(Reuters) – Cannabis producer Cresco Labs Inc said on Wednesday it would buy rival Columbia Care Inc in a $2 billion all-stock deal, creating the largest U.S. pot company by sales.
Cannabis sales have boomed in the United States in recent years and are expected to reach $46 billion by 2026, according to industry research firm BDSA, as states like New York and New Jersey open up.
Columbia Care investors will receive 0.5579 shares of Cresco Labs for each unit held, representing a premium of 16% to the company’s last closing price.
The deal, which Reuters reported on Tuesday, is expected to close in the fourth quarter of 2022.
(Reporting by Arunima Kumar in Bengaluru; Editing by Aditya Soni)
