Lowe's Attempts Hostile Takeover of Rona. Quebec Government Vows to Protect the Canadian Company.

American based Lowe's announced an offer to buy Canadian based Rona for $14.50 per share. Lowe's (NYSE:LOW) is seeking to acquire all outstanding shares of Rona (TSE:RON), which amounts to about $1.78 billion. If accepted by Rona's shareholders, the acquisition would mark a massive expansion for Lowe's into Canada, but would only amount to about 6% of the U.S. based businesses $30 billion market capitalization.

Rona's Board of Directors has unanimously refused the bid, and is advising that shareholders do the same.

Interestingly, the Quebec government has announced that it might intervene to block the offer from Lowe's as it is is not seen to be in the best interests of the province. The Quebec government has already contacted Rona and informed the directors that the provincial government will provide all necessary assistance in helping the company fend off American takeover.