QUEBEC CITY – The provincial government has come out to say it won’t interfere in the Rona sale.
This is despite the fact that in 2012, it lent its support to stop American chain Lowe’s from purchasing the Quebec-based hardware store.
“We had a hostile takeover, that was a threat,” explained Quebec’s economy minister, Dominique Anglade.
This time, management is in favour of the deal.
READ MORE: Lowe’s to buy Rona in $3.2 billion deal
Anglade said representatives from Rona assured her they won’t change the name and they’ll keep company headquarters, as well as 17,000 thousand jobs, in Quebec.
“All those guarantees were discussed with the CEO Prud’homme. I was reassured. However, I want to sit down with him and make sure it’s a positive experience for all Quebecers,” she said.
Yet, officials from the Parti Québécois insisted if past experiences are any indication, Quebec shouldn’t bet on keeping its Rona head office.
“Remember Bell Astral? Remember Rio Tinto Alcan? Remember Provigo? At the end of the day, what’s going on?” said party leader Pierre Karl Péladeau.
“Basically, we are losing our capacity to take decision, to control our economy.”
All the same, the federal government doesn’t seem too concerned.
Maryann Mihychuk, the federal Employment Minister, said she can see positive impacts from the sale on the retail sector.
“This whole thing is about a strong economy and when we invest in infrastructure, when we have good jobs for people, we will then be renovating our decks and creating jobs and buying products,” said Mihychuk.
The Caisse de Dépôt, Quebec’s public pension plan, is also in favour of the deal.
It holds 17 percent of Rona’s shares, which it says it’ll sell at $24 – double what they were worth when the stock market closed on Tuesday.
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