LOWE’S MAKING SOME TOUGH DECISIONS TO STAY COMPETITIVE Lowe’s announced that it will be closing 51 underperforming stores in the United States and Canada to better compete with rival Home Depot in a slowing housing market. There will be 20 U.S. closures in New York, Texas and Califor- nia, with remaining 31 closures in Canada with retail outlets and two plants closing. No details were given regarding the impact this would have on the business or potential job losses in the decision. Other than it was in efforts to catch up with the long-time sector leader Home Depot which has per store sales of twice that of Lowe’s. In addition to becoming more completive with Home Depot, this is also a result of Americans spending less on housing as it seems the industry has hit a seven-year home- building peak and things are starting to level out in the industry. Lowe’s, which operates about 1,800 U.S. stores and 300 in Canada, expects the closures to be completed by February of next year, with the exception of some U.S. stores that are closing immediately.
ALTAGAS SELLING NORTH AMERICAN ASSETS
AltaGas Ltd. announced it has a signed deal to sell about $560 million worth of natural gas midstream assets and power generating assets to two buyers.
Birch Hill Equity Partners Management Inc. has agreed to pay $165 million for a group of smaller scale gas midstream and power assets in Canada, as well as its commercial and industrial customer portfolio in Canada. This transaction would also include 43.7 million shares of Tidewater Midstream and Infrastructure Inc., which AltaGas holds.
A second buyer is Avenue Capital which will acquire AltaGas’s San Joaquin power assets in California for roughly $400 million.
AltaGas says the proceeds from the sales will be used to repay debt related to its acquisition of Washington, D.C.-based energy utility company WGL Holdings, Inc., which closed earlier this year in July.
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SPOTLIGHT ON BUSINESS MAGAZINE • NOVEMBER 2018
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