Aphria and Aurora Explored Merger, Talks Failed: BNN Bloomberg
(Bloomberg) -- Canadian cannabis producers Aphria Inc. and Aurora Cannabis Inc. considered a merger that would have created a C$3.5 billion ($2.6 billion) firm before talks broke down last week, BNN Bloomberg television reported.
The companies opted to step back from merger talks that took place over several weeks after failing to agree on board composition and compensation for some senior executives, BNN Bloomberg reported, citing two people familiar with the matter. It’s not known if the two firms will revisit merger talks in the future, said the people, who spoke under condition of anonymity.
Before talks ended, executives agreed on terms that would have seen Aphria shareholders control about 51% of the combined entity through a share-swap deal while Aurora shareholders would own the remaining 49%, BNN Bloomberg said. Aphria Chief Executive Officer Irwin Simon was set to become CEO of the combined company and executives identified about C$200 million in potential efficiencies that could be saved.
A merger would have created a company with operations in 25 countries and combined annual revenue above C$800 million, with a leading 30% share of the Canadian recreational cannabis market.
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