A PYMNTS Company

Canada: Marijuana US$3.2b mega merger

 |  May 14, 2018

Aurora Cannabis’s US$3.2 billion all-stock offer to take over rival licensed marijuana producer MedReleaf will create what the target company’s CEO described as the “undisputed world leader in cannabis” and the largest-ever deal in Canada’s burgeoning cannabis industry, reported Bloomberg.

If approved, the deal will create a cannabis behemoth capable of producing more than 570,000 kilograms of marijuana per year, a significant portion of projected demand as the country moves to legalize recreational pot in the coming months.

The companies’ combined production capacity totals more than two-thirds of the roughly 800,000 kilogram annual domestic cannabis demand in 2019, as estimated by CIBC analysts in a report earlier this month.

Canadian marijuana growers are racing to gain market share as Prime Minister Justin Trudeau pushes to legalize recreational use this year reported Bloomberg. Aurora is leading the effort to consolidate the industry, having acquired more than 10 targets in the past two years.

Full Content: Bloomberg

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