Canada’s biggest medical marijuana company, Canopy Growth Corp., just got bigger by acquiring competitor Mettrum Health Corp. for 430 million Canadian dollars ($323 million).
More mergers are likely, analyst Mason Brown of M Partners in Toronto, told Bloomberg News. Canada currently has 36 federally licensed MMJ producers. But as more mergers occur, he predicted, five to eight companies will control most of the market.
Canopy Growth hopes to expand production as Canada’s government moves forward with plans to legalize adult-use cannabis, according to Bloomberg News.
Last week, a federal task force presented a report to Prime Minister Justin Trudeau’s government containing recommendation for how the country’s proposed marijuana legalization system should be regulated. Trudeau’s government intends to introduce legalization legislation next spring.