Does the Aphria-Tilray Megamerger Make Either Stock a Buy?
On Dec. 16, 2020, two major Canadian marijuana players, Aphria (NASDAQ: APHA) and Tilray (NASDAQ: TLRY), announced they would be merging, and in turn, forming the "largest cannabis company in the world" in terms of pro forma revenue.
As the marijuana industry grows, it has invited a lot of mergers and acquisitions (M&A). Perhaps the most notable have been between U.S. beverage companies and Canadian pot companies that have joined forces to expand cannabis product offerings both in the U.S. and Canada. Aphria, for instance, acquired American craft beer maker SweetWater Brewing to make a footprint in the cannabis beverages market.
The news of a combined Aphria-Tilray business has investors excited, on top of general sector enthusiasm. The industry benchmark, the Horizons Marijuana Life Sciences ETF, has soared 95% so far this year. Let's take a closer look at the terms of their agreement and if this merger will in fact live up to its hype for both Aphria and Tilray.
Source Fool.com
