Aurora Cannabis received the green light from Canada’s Competition Bureau to proceed with its acquisition of CanniMed Therapeutics, clearing the way for the creation of the second-largest marijuana company in the country.
The acquisition puts the Alberta-based licensed cannabis producer in the same league as Canopy Growth, the largest Canadian company, said Russell Stanley, an analyst Echelon Wealth Partners in Toronto.
Stanley expects to see more consolidation in the lead-up to adult-use cannabis legalization late this summer.
Aurora’s hostile takeover attempt turned friendly in January when Saskatchewan’s CanniMed accepted a sweetened cash-and-share offer worth 1.2 billion Canadian dollars ($900 million).
When the deal was announced, the companies’ combined quarterly sales were pegged at CA$13 million.
With the approval of the Competition Bureau, Aurora intends to move ahead with the acquisition and then begin the integration of CanniMed into Aurora, the company said in a news release.
Aurora intends to establish the Medical Cannabis Centre of Excellence in Saskatchewan to take advantage of CanniMed’s expertise in medical research.
The combined company will have over 40,000 patients and 260,000 kilograms per year in funded capacity.
Aurora, CanniMed and Canopy are traded on the Toronto Stock Exchange under the symbols ACB, CMED and WEED, respectively.