Lowe's purchase of Rona good for Canadian consumers, marketing expert says

U.S. retail giant Lowe'spurchase of Quebec-basedRona is good for consumersbut bad for Canadian suppliers,a Winnipeg marketing expert says.

• Rona sale should be halted by Quebec government: PQ

• Lowe's offers $3.2B to take over Canadian rival Rona

• Lowe's-Rona deal the latest in long run of foreign purchases

Fang Wan of the University of Manitoba's AsperSchool of Business said Lowe's will provide stiff competition for Home Depot, and that's where consumers will benefit.

"When you have a sharp market competition, it actually gives you better choices, better pricing," Wan said.

"I think from consumers' perspectives, it creates value. Butfrom suppliers' perspectives, Canadian business perspective, it may have some negative effects."

Lowe's will likely add to Rona's stock with products from its American suppliers, which could take business away from Canadian companies, Wan said.

Lowe's officials said the storewill keep Rona's name and employees, and Wan said that's good.

"They [will]try to maintain the cultural identity of Rona.Its employees, its suppliers, the executive management, the Canadian-ness is much in the operation, not in the ownership," shesaid.

"So, if you look at it that way, it's not entirely not being Canadian."