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Quebec’s securities regulator plans to announce its own competing and more radical proposal, amid public and government concern raised by last year’s proposal by U.S.-based Lowe’s Cos. Inc. to acquire Quebec retailer Rona Inc.
Quebec’s securities regulator plans to announce its own competing and more radical proposal, amid public and government concern raised by last year’s proposal by U.S.-based Lowe’s Cos. Inc. to acquire Quebec retailer Rona Inc.
(Christinne Muschi For The Globe and Mail)

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Why are we protecting Rona again?

It was difficult to defend the Quebec government’s decision to protect Rona Inc. at all costs when Lowe’s Companies Inc. first launched its hostile takeover bid last summer. It’s even more difficult today.

When the $1.8-billion hostile bid was first launched, there was an argument – albeit it a weak one – that Lowe’s was swooping in at an opportune time, stealing a Canadian company when the home improvement industry’s recovery was still nascent. If you forget that Lowe’s had suffered for five straight years, it might have seemed like a decent defence.