Green Thumb explores potential merger with Boston Beer, WSJ reports (updated)

Boston Beer

04/06/2024 16:02

(Adds background, response from Green Thumb)
       June 4 (Reuters) - Cannabis producer Green Thumb
Industries  GTII.CD  has expressed an interest in merging with
U.S.-based brewer Boston Beer  SAM.N , the Wall Street Journal
reported on Tuesday, citing a letter sent to Boston Beer founder
Jim Koch.
    In the letter, Green Thumb CEO Ben Kovler said the merger
would allow his company, currently listed in Canada, to be
listed on a major U.S. exchange, WSJ reported.
    The report also attributed Kovler as saying that he would be
able to make a superior offer for Boston Beer, and that while
young people are drinking less alcohol, the U.S. cannabis market
is ballooning.
    Green Thumb, in response to WSJ's report, in a statement
declined to comment on the news.
    The company's reported move comes after Boston Beer said it
was "fully focused" on its business as an independent company
after the WSJ reported on Friday that Japanese whisky-maker
Suntory Holdings was in early talks to acquire the U.S. brewer.
    Suntory, however, said that it was not in negotiations to
acquire Boston Beer.  
    Boston Beer has a market capitalization of roughly $3.6
billion.
        A deal between Boston Beer and Green Thumb could be
difficult to pull off, given that cannabis consumption remains
illegal at the federal level in the U.S., the WSJ report added.
    Boston Beer and Green Thumb did not immediately respond to
Reuters requests for comment.
    Shares of Boston Beer were up 1.4% in morning trade.
Including session moves, they have fallen 6.5% since market
close on Friday.

 (Reporting by Juveria Tabassum, additional reporting by Anuja
Bharat Mistry; Editing by Shailesh Kuber)
 ((Juveria.Tabassum@thomsonreuters.com;))