Home Depot to buy back HD Supply in $8 bilion deal

The logo of Down Jones Industrial Average stock market index listed company Home Depot is seen in Encinitas, California April 4, 2016. REUTERS/Mike Blake/File Photo

(Reuters) – Home Depot Inc HD.N said on Monday it would buy HD Supply Holdings Inc HDS.O 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% premium to the stock’s last close. HD Supply’s shares jumped 24.5% 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,

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