The proposed acquisition of building materials distributor GMS by home improvement retail giant The Home Depot is progressing decisively toward finalization. With overwhelming shareholder support already secured and a key regulatory deadline extended, market confidence in the deal’s completion is running high.
Overwhelming Shareholder Support and Extended Timeline
A decisive majority of GMS shareholders have already tendered their shares in favor of the acquisition. As of last Friday, approximately 29.3 million shares—representing about 77% of all outstanding stock—had been committed to the deal. This substantial level of approval demonstrates strong investor backing for the transaction.
In response to this progress, The Home Depot has extended the offer’s acceptance period. Rather than concluding last Friday, the tender offer will now remain open until Wednesday, September 3, 2025. All other terms of the acquisition agreement remain unchanged, including the cash offer of $110 per share, which The Home Depot has maintained without alteration.
Regulatory Landscape and Final Hurdle
The regulatory pathway has been largely cleared for the transaction, which was initially announced in late June. U.S. antitrust authorities have granted their approval and terminated the mandatory waiting period ahead of schedule.
Should investors sell immediately? Or is it worth buying GMS?
Only one significant approval remains outstanding: clearance under Canadian competition law. This final regulatory green light is a necessary condition for the ultimate completion of the acquisition. Market participants appear confident this hurdle will be cleared, given the current trading pattern of GMS stock.
Market Confidence and Competitive Implications
The market is pricing the acquisition as virtually certain. GMS shares are currently trading at $109.84, sitting just marginally below the formal offer price of $110 per share. This minimal spread indicates that investors anticipate the transaction will be finalized at the agreed-upon terms.
The acquisition carries significant implications for the competitive landscape of building materials distribution. Integrating GMS into The Home Depot’s professional business segment could create substantial shifts in market dynamics. For GMS shareholders, however, the outcome appears straightforward: an attractive all-cash exit at a premium valuation.
Ad
GMS Stock: Buy or Sell?! New GMS Analysis from February 7 delivers the answer:
The latest GMS figures speak for themselves: Urgent action needed for GMS investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 7.
GMS: Buy or sell? Read more here...
