Canadian companies at heart of giant weed merger

New Brunswick-based marijuana firm saves another Canadian weed company from hostile U.S. takeover in $560-million deal

Published Nov 03, 2026  •  2 minute read

Eight years after cannabis legalization, Canadians seeking CBD for health-related reasons are still caught between two systems that weren’t built for them. Photo by ADOBE /STOCK

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Canada’s on a major high.

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Moncton, N.B.-based Organigram Global agreed Tuesday to buy out fellow Canadian marijuana producer Aurora Cannabis for $560 million, roughly $7.80 a share, according to Barrons.com. The deal keeps the cannabis firm in Canada, and puts an end to a hostile takeover attempt by American weed chain Curaleaf Holdings.

The two companies say the merger will make the new entity “a global cannabis champion with a leadership position in Canada, Europe and Australia.”

The merger is expected to wrap up in January after shareholders approve at December meetings. Aurora stockholders can take cash payouts from Organigram, stock or half and half. U.K. tobacco giant British American Tobacco, through its subsidiary BT DE Investments Inc., is a key stockholder of Organigram, holding 45% equity and 30% of its voting shares and is putting up $187.5 million for the deal. The two companies say the merger will save them $50 million a year.

The big comedown

The global cannabis industry, which five years ago saw a breakout of many firms amid high stock prices, has been consolidating in recent years. Stocks in marijuana producers such as Aurora in Canada and Curaleaf in the U.S. were red-hot at the start of the 2020s as recreational cannabis became legal in more states. Recreational marijuana use is currently legal in 24 states, while medical marijuana is legal in 41 states. In Canada, marijuana is legal everywhere for both recreational and medical use under the Cannabis Act of October 2018.

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But despite the loosening of regulations, the recreational marijuana market didn’t develop as expected. Competition from unlicensed sources has stayed strong, and the U.S. federal government hasn’t yet legalized it. Aurora soon abandoned selling recreational weed, narrowing itself to prescription sales while Organigram stayed in the market. Curaleaf attempted its hostile takeover of Aurora in August, which was roundly rejected by shareholders as per the company board’s recommendations. Last month, Curaleaf tried again, this time offering $5 per share in cash and stock and were once again rejected.

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