CCHWF - This Mega Cannabis Merger Has Fallen Through: Is M&A in Cannabis Dead?
2023-08-09 08:05:00 ET
One of the largest acquisitions in recent years in the marijuana industry is over. Cresco Labs (OTC: CRLBF) and Columbia Care (OTC: CCHWF) reached an agreement in 2022 that would create an industry-leading entity in the cannabis market. The combined company would be neck and neck in revenue with the top multi-state operators in the U.S., including Curaleaf Holdings and Trulieve Cannabis .
Alas, the deal is for naught. On July 31, the companies announced that they were walking away from the merger. Neither company will need to pay a termination fee as a result of the decision to mutually step away from the deal.
On March 23, 2022, Cresco Labs announced it would "become the new leader in cannabis with the acquisition of Columbia Care." The transaction valued Columbia Care at approximately $2 billion. The one hurdle was that the companies competed in many states, and they were planning to divest in order to obtain regulatory approvals.
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This Mega Cannabis Merger Has Fallen Through: Is M&A in Cannabis Dead?