Home Depot drops plan to buy Utah's EnerBank

ATLANTA — The Home Depot Inc. has withdrawn an application to buy a Utah bank, saying that the loan business no longer fits into its strategy of concentrating on its retail trade.

The world's largest home improvement store chain announced in May 2006 that it would buy EnerBank USA, a home-improvement loan provider, from CMS Energy Corp., a Michigan-based energy holding company.

Officials of Atlanta-based Home Depot said at the time that they wanted to expand business with contractors by making it easier to finance home improvements. Contractors would be able to tell their clients how to obtain financing by telephone from EnerBank.

Home Depot spokesman Ron DeFeo said Thursday that political or regulatory opposition to banks merging with retail operations had nothing to do with the company's decision to inform EnerBank this week that it would not go through with the deal.