Will alcohol and cannabis be a marriage made in heaven? Many in the business world of mergers and acquisitions in Canada are thinking that may be the case. Alcohol company Constellation Brands Inc., based out of the United States has recently invested $5 billion in Canopy Growth Corp., the producers of pot in Canada. Experts are speculating there are more of these types of deals on the horizon.
The country's inflation rate is rising. For the business and commercial realm in Canada, that's not such great news. In fact, having climbed to 3 per cent, that rate is the highest it has been in seven years. But what does that spike really mean in the giant scheme of all things in business?
It doesn't seem to be business as usual. There have been many changes in the business and commercial world in Canada with the onset of U.S. tariffs on certain goods. The dairy company Saputo is blaming its U.S. rivals for its 37 per cent net income fall in the first quarter of the year. Saputo's CEO said the company is seeing some unusual things in a competitive market that the industry hasn't seen before, including the stockpiling of products.
Many Canadian companies are looking internationally to secure deals. Mergers and acquisitions in Canada are robust, hitting $93 billion in the first part of this year. It seems the upswing is due to the burgeoning cannabis industry, real estate and energy areas. A recent review of PricewaterhouseCoopers in Canada suggests deals stateside have increased by 8 per cent, while there have been more than 160 outbound international deals struck.