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10 Notable M&A Deals That Happened (and Didn’t) in 2020

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<![CDATA[While the mergers and acquisitions (M&A) space in the cannabis industry has significantly slowed in 2020, it certainly hasn’t stopped—not even during a pandemic. According to S&P Global Market Intelligence, “a drop in company valuations complicated by the coronavirus-triggered capital squeeze” were the two major reasons for the slowdown. Still, S&P Global reports U.S. and Canadian cannabis and cannabis-related companies completed 124 deals in 2020, worth a combined $615.1 million—compared to 249 deals in 2019 and 324 deals in 2018. We also learned this year, according to a Department of Justice (DOJ) whistleblower, that “U.S. Attorney General William Barr was motivated by his personal dislike of the cannabis industry when he launched multiple Antitrust Division merger investigations into nearly a dozen cannabis deals last year,” Cannabis Business Times reported in July. According to Eric Berlin, co-chair of Denton’s Cannabis Practice, “Many of the cannabis mergers under investigation did not get closed … due to these additional costs and time delays, and now, not only are the companies involved left with little to no recourse, but the DOJ’s actions have dramatically slowed the M&A activity in the industry.” However, recovering valuations and renewed investor interest are expected to increase deals in 2021, according to the S&P Global. Not to mention, it was a monumental year for cannabis legalization in the U.S. And, cannabis businesses in most states and provinces were considered essential services. As we wait to see what 2021 deal-making brings, we’ve rounded up some of the most notable deals that closed, and those that fell through, in 2020.  1. Cresco Labs Acquires Origin House Before the coronavirus pandemic, Cresco Labs officially closed its acquisition of Canada-based cannabis company Origin House. The deal was originally valued at C$1.1 billion, though the deal’s value ended up being lower amidst declining stocks…

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Source : 10 Notable M&A Deals That Happened (and Didn’t) in 2020

reposted by Cannabis News World

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