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.
Alcohol companies are looking to the soon-to-be legal cannabis sector in Canada as a means of diversification. When it comes to possible mergers and acquisitions, it looks as though there is great interest among companies in partnering with CannTrust Holdings Inc. of Ontario -- one of Canada's top producers of cannabis. An industry expert says the company is a strong contender when it comes to possible offers from other industries that may have an interest in the market such as alcohol and tobacco companies.
There have also been rumblings regarding CBD, which is the non-psychoactive ingredient of the cannabis plant. Some companies are thinking CBD may be the perfect addition to sports drinks since CBD has been known to aid in recovery. It also provides pain relief and is an anti-inflammatory.
There are all kinds of thoughts as to what is going to happen when Canada goes cannabis legal in October. There may be more than a couple mergers and acquisitions on the horizon. A lawyer with experience in business law can help in deal-making processes and provide wise guidance when it comes to helping clients to ink deals that are in their favour.