[BeaverFever]

BartSimpson BartSimpson:

The Canadian government would have a right to stop a takeover if there were a compelling national interest that was being protected. Like if a US firm tried to buy Bombardier I'd totally understand the MoD opposing that. But what compelling national interest is represented in a retail outlet? None.

Nopw. Its no different than a foreigner showing up on your border and demanding the right to vote, own a gun and drive a car. If a foreign business suddenly shows up and demands the the rights and privileges of Canadian incorporation, they have to pass a test.

Furthermore, the government has to believe that a takeover is not going to adversely affect the market by eliminating competition and creating a monopoly/oligopoly and that there will be a "net benefit" to Canadians. Finally, they want to make sure that the acquisition of a Canadian company is in fact, investment in Canada and not going to be sitatuion where a foreign entity outside our legal jurisdiction is raiding Canadian pension funds, killing jobs, ripping off other Canadian companies, and/or dodging taxes etc. Its probably the same in the US. Buying up businesses is not an inalienable right, I dont know why you think it would be.

[QBall]

raydan raydan:

QBall QBall:

Why is the Quebec government interfering with the actions of private businesses? Don't they realize it's this kind of shit that's driving businesses out of Quebec? If I was Lowe's I'd be suing the Quebec government for illegal interference.

The government had nothing to do with this. Rona itself refused the offer on the grounds that the deal wouldn’t be in the best interest of the company’s shareholders.

The government has everything to do with this. They were prepared to to come up with a counter offer for Lowe's bid.

$1:

The Quebec government said it has directed Investissement Quebec, the provincial investment agency, to look into ways of countering Lowe’s offer.

That goes beyond regulation and right into direct interference in the market place.

[QBall]

BeaverFever BeaverFever:

QBall QBall:

Why is the Quebec government interfering with the actions of private businesses? Don't they realize it's this kind of shit that's driving businesses out of Quebec? If I was Lowe's I'd be suing the Quebec government for illegal interference.

Foreign takeovers of domestic businesses require government approval. After all, corporations are not above the law, they are non-persons given special privelages of a person by goverment, such as the right to own property, incur debts, own bank accounts, etc.

Supposedly, it's meant to prevent events like Caterpillar plundering the Electro-Motive plant in London Ontario but as that case proved, the government picks and chooses when to intervene and when to just rubber-stamp a transaction.

The Quebec government wasn't planning to block the sale through regulatory powers, they were prepared to counter Lowe's offer and buy Rona. See my previous post.