Categories Analysis, Cannabis, U.S. Markets News

The cannabis industry is high on deals and partnerships

The marijuana industry may be a relative newbie in the stock markets, but that isn’t stopping it from going on a deal rampage. The legalization of recreational use of weed in Canada in October, as well as constructive discussions happening in the US and many other parts of the world, have given cannabis companies enough confidence to shake hands within and outside the industry.

Let’s take a quick look at some of the recent big deals that were inked within the industry.

Image: Sharon McCutcheon on Unsplash

Tilray – AB InBev: On December 20, the maker of Budweiser beers, AB InBev (BUD) inked a $100 million deal with Canadian marijuana giant Tilray (TLRY) to study the production and distribution of non-alcoholic drinks infused with cannabis components. The joint venture, in its initial phase, is focused only in Canada.

Tilray – Sandoz: A couple of days before the deal with AB InBev, Tilray sealed another agreement with German company Sandoz, which is a subsidiary of Novartis (NVS). Under this agreement, the two companies would collaborate to make new medical marijuana products and co-brand some non-combustible products.

Aurora Cannabis – Farmacias Magistrales: Earlier this month, Canadian weed firm Aurora Cannabis (ACB) announced that it was acquiring the sole Mexican importer THC  products. The deal opens up a Mexican market of 130 million population to Aurora. Value of the deal was not disclosed.

Tilray, Canopy Growth could emerge winners in a year’s time

Altria Group – Cronos Group: Altria Group (MO), the parent company of Phillip Morris International (PM), inked a deal in December with Cronos Group (CRON) to invest about $1.8 billion in the Toronto-based weed company. At the close of the deal, Altria’s holding in the company would increase to almost 45%.

Constellation Brands – Canopy Growth: The maker of Corona beer, Constellation Brands (STZ), raised its stake in the largest medical marijuana company, Canopy Growth (CGC), from 10% to almost 38% in August with an additional investment of $4 billion. The deal was sealed on hopes that US regulators will sooner or later give a green signal to the sale of drinkable cannabis.

 

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