BAT looks beyond tobacco to Canadian marijuana
Marlboro maker Altria has invested in pot producer Cronos Group Inc, while Corona beer-maker Constellation Brands Inc has a stake in Canopy Growth
Reuters (UK)
Thursday, March 11, 2021
Thursday, March 11, 2021
British American Tobacco said it will buy a nearly 20% stake in Canada-based cannabis producer Organigram for about 126 million pounds ($175.8 million) as it seeks to expand beyond its main tobacco business. Big tobacco and liquor companies in North America have already made large investments in the nascent industry, with cannabis seen as a less harmful alternative to cigarettes. With top Democratic lawmakers in the United States also promising to decriminalise marijuana use, analysts and experts predict record investment in the industry this year. The deal will give BAT access to R&D technologies, product innovation and cannabis expertise, it said in a statement, with an initial focus on natural remedy cannabidiol (CBD).
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