MONTREAL - U.S.-based hardware chain Lowe's has hired a lobbyist in Ottawa to help acquire Rona (TSX: RON) for $ 1.76 billion, an offer that was met with a storm of opposition Quebec.
The Canadian registry of lobbyists shows that Robert Evershed, from Prospectus Associates, began working for Lowe's earlier this month.
The documents state that Evershed is seeking approval for the deal from the Industry Minister.
Evershed will represent Lowe's, to the Prime Minister's Office, the ministries of Foreign Affairs and International Trade and the Economic Development Agency of Canada for the Regions of Quebec.
In July Lowe’s offered $14.50 per share for Canada’s largest hardware chain.
Rona quickly rejected the offer, while the Quebec government opposed it as well, claiming that it would not be in the best interests of the province or of Canada.
Quebec said that Rona plays a leading role in the creation of tens of thousands of jobs in the province and across the country.
The Caisse de dépôt et placement du Québec increased its stake in Rona to 14.2 per cent shortly after the takeover talk.
The Caisse said that Rona must improve its numbers but did not comment directly on the Lowe’s takeover attempt.
Lowe's has only 30 stores in Canada but has 1,745 across North America, most in the United States.
The first Canadian-based Lowe's store opened in 2007, several years after the American-based Home Depot landed in Canada. Home Depot now has 180 stores across Canada.
Rona employs 30,000 workers in almost 800 stores, which do business under a variety of names.
-With a file from The Canadian Press
