Hexo buying Redecan for $925M in play for Canadian pot dominance - Article bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
Hexo Corp. is buying rival cannabis producer Zenabis Global Inc. in a $235 million all-stock deal that will position the Ottawa-based company as one of the biggest Canadian pot firms by sales.
The deal will give Hexo a significant boost in cultivation capacity, adding 111,000 kilograms of cannabis production to its operations, while securing a footprint in the nascent European medical market.
It is also 2021âs first major M&A deal in the pot sector, coming a couple of months after Aphria Inc. and Tilray Inc. announced plans to merge. Analysts expect more consolidation to take place in the Canadian cannabis sector this year as struggling companies are could be snapped up to stem mounting losses.