The United States Leads In Mergers and Acquisitions in The Cannabis Industry

In the first half of 2019, the United States and Canada were in close proximity with cannabis market considerations. The amount for both countries was about 2.1 billion dollars. Then, from the second half of 2019 through 2020, the Canadian market slowed down to almost a standstill, while the U. S. market activity remained strong.

Part of the reason for the U. S. dominance in the market were large transactions in the market. One of them totalled 949 million dollars, in the first quarter of 2020, while another transaction amounted to 830 million dollars, in the third quarter of 2020. In the first quarter of 2021, the market activity in both countries showed an upward turn. The U.S. market activity benefitted from an increase in public acquisitions, while Canadian activity included a 353 million dollar divestiture. Canadian growth was also augmented in the second quarter of 2021 by a mega merger. In the U. S., a 2.1 billion dollar deal was announced.

While consolidation in Canada is expected to continue, in pursuit of increased cash flow, there will also be superior growth potential in the United States. This will maintain the position of the U. S. market at the front of merger and acquisition activity. A proprietary information service monitors the rise of capital, and merger and acquisition activity in the legal cannabis and hemp industry. Every week, the company totals the aggregates and analyzes all closed deals in the cannabis industry.