Canopy, the world's largest producer of cannabis in terms of market value, is among the potential buyers of the Spanish company Alcaliber SA, according to people familiar with the matter.
Canopy, based in Smiths Falls, Ontario, is said to compete with GHO Capital, a UK healthcare investor, and Alantra Partners SA, a Spanish investment firm. The morphine and thebaine producer appears to be valued at around 200 million euros ($ 246 million) to 275 million euros in a deal.
While thetalks continue and that Alcaliber could attract more suitors, Canopy is seen as the most likely acquirer, people say. Final offers are due in the next few days, and a buyer could emerge in early April, they said.
Canopy and Alantra declined to comment. GHO did not respond to requests for comment. Canopy shares rose 6,7% to C $ 34,55 in Toronto. So it reached its highest level in five weeks.
Consolidation of the cannabis industry has progressed. Canadian companies are looking to gain market share in Canada and abroad. While the total domestic market for medical and recreational cannabis is expected to reach C $ 8 billion in sales by 2021, companies like Canopy are also looking to expand internationally.
In January, Canadian producer Aurora Cannabis Inc. agreed to acquire CanniMed Therapeutics Inc. for 1 billion Canadian dollars. Thus, it was then the most important merger in the industry.
Alciber, a major producer of morphine
Torreal SA, the investment fund of Spanish billionaire Juan Abello, majority owner of Alcaliber. French company Sanofi has a 40% stake. Founded in 1973, it supplies raw materials based on the cultivation of the opium poppy, as well as the extraction of alkaloids. These products make it possible to produce medical morphine. Torreal declined to comment.
Canopy has approximately 46500 square meters of indoor and greenhouse production capacity. Last year, alcohol giant Constellation Brands Inc. bought about 10% of the company, becoming its largest shareholder.