Marijuana firms in Canada eye rival targets for deals to consolidate industry
New York/London — Consolidation in Canada’s nascent marijuana industry is heating up, with two of the largest players agreeing to the biggest merger seen so far in the sector. Aurora Cannabis agreed to buy rival MedReleaf for about C$2.9bn ($2.3bn) in stock, the companies said on Monday in a statement. The deal will create a producer with the capacity to grow 570,000kg a year of cannabis at nine facilities in Canada and two in Denmark. The merged company will also have distribution networks at home as well as in Europe, South America and Australia. Canadian marijuana growers are racing to gain market share as Prime Minister Justin Trudeau pushes to legalise recreational use in 2018. Aurora is leading the effort to consolidate the industry, having acquired more than 10 targets in the past two years. In another Canadian deal announced on Monday, Canopy Growth said it agreed to buy the 33% stake in greenhouse operator BC Tweed Joint Venture that it doesn’t already own. Canopy said sepa...
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