Lowe's (NYSE:LOW) says it is not about to put building products distributor HD Supply Holdings (NASDAQ:HDS) in its shopping basket. Responding to a report in Bloomberg that it had approached HD Supply for preliminary talks regarding an acquisition, Lowe's has emphatically denied this.
"While it is the Company's practice to not comment on rumors or speculation, we believe it is important to note that Lowe's is not in discussions with HD Supply and we have no plans to pursue a transaction with them," the company wrote in a tersely worded press release published on Tuesday. It added that it doesn't intend to comment further.
On Monday, Bloomberg, citing "people familiar with the matter," reported that both Lowe's and HD Supply had also been conferring with unnamed advisors on a potential deal. The latter company was once owned by Lowe's archrival Home Depot; it was acquired in 2007 by The Carlyle Group, Bain Capital Specialty Finance, and Clayton, Dubilier & Rice in a $8.5 billion deal.
HD Supply has not yet commented on the Bloomberg article.
Lowe's has been doing well lately, due in no small measure to the coronavirus pandemic. Many consumers, strongly encouraged to spend a great deal of time at home, are spiffing up their domiciles to make them more comfortable. Like Home Depot, it has enjoyed significant increases in comparable-store sales lately, aided by robust gains in online commerce.
On Tuesday, the share prices of both Lowe's and HD Supply rose, in contrast to the dip of the S&P 500 index. The former stock advanced by 1.5%, while the latter gained just under 1%.