U.S. home improvement chain Lowe's is buying Canadian rival Rona in a friendly takeover valued at $3.2 billion Cdn.

The boards of both companies unanimously approved the transaction, they said in a news release early Wednesday.

The deal gives the U.S. chain more of a foothold in Canada's competitive home improvement and renovation retail market, especially in Quebec, where Rona dominates the market.

Lowe's has agreed its Canadian headquarters will be in Boucherville, Que., and said it will maintain Rona's multiple retail store banners.

Lowe's has also committed "to continue to employ the vast majority of its current employees and maintain key executives from Rona's strong leadership team," the release said.

More to come