Is a Mega-Merger Between Tilray and SNDL Inevitable?
Consolidation in the cannabis industry is inevitable. Many businesses are struggling to grow, and pooling resources together can be the best way to increase market share and generate efficiencies.
Two cannabis companies that I can definitely see crossing paths in the near future are SNDL (NASDAQ: SNDL) and Tilray Brands (NASDAQ: TLRY). Both companies are fighting for market share, and that could intensify in the future, especially as they continue to pursue acquisitions. Another scenario that could happen is that they end up joining forces.
Tilray is likely to go on acquisition spree, simply because it has an aggressive sales target of $4 billion that it set for itself for 2024. That's just not a scenario I see happening organically for a company that, over the trailing 12 months, reported just $628 million in revenue.
Source Fool.com
