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Home Depot to Buy Back HD Supply in $8 Bilion Deal

Home Depot Inc said on Monday it would buy HD Supply Holdings Inc in a deal valued at about $8 billion, setting itself up to regain control over the industrial materials wholesaler after spinning it off over a decade ago. The top U.S. home improvement chain said it would offer $56 in cash for each share of HD Supply, a near 25 percent premium to the stock’s last close. HD Supply’s shares jumped 24.5 percent on the news. With the deal, Home depot is looking to expand its reach into building utility and maintenance products, betting that the economic toll of the COVID-19 pandemic will force swathes of Americans to look for affordable housing. “With a bolstered sales force and enhanced supply chain, we have no doubt Home Depot will be a more formidable player in the$55 billion maintenance, repair and operations market for years to come,” Jefferies analysts wrote. …