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Pot M&A Boom Awaits, in California and Beyond: Cannabis Weekly

Feb. 7, 2021, 3:00 PM

Jazz Pharmaceuticals Plc’s $7.2 billion purchase of GW Pharmaceuticals Plc this past week is the biggest tie-up yet for the cannabis industry. And it’s likely just the beginning.

The blockbuster deal, which dwarfs Tilray Inc. and Aphria Inc.’s $3.8 billion-valued merger as well as Constellation Brands Inc.’s multibillion-dollar investment in Canopy Growth Corp., shows the growing interest in pharmaceutical-grade cannabinoids. With big money flowing into this market and the broader industry, it also portends more megadeals ahead.

“Capital is back in the cannabis sector,” Bill Doran, a partner in Benesch’s Chicago office specializing in mergers and acquisitions, told ...