(Adds details on deal, background on cannabis industry)
Jan 29 (Reuters) - Canadian cannabis company Aphria Inc on Monday said it would buy rival Nuuvera Inc for C$826 million ($670 million) to expand globally, ahead of Canada’s proposed legalisation of recreational weed by mid 2018.
The move comes days after the marijuana industry saw its biggest deal ever, when Aurora Cannabis said it would buy CanniMed for C$1.1 billion. .
Medical marijuana is already legal in Canada, but the sector is expected to get a boost from exports as many other countries move closer to legalisation.
Aphria will leverage Nuuvera’s network in countries like Germany, Italy, Spain, the United Kingdom and Uruguay to create an international footprint, the companies said.
Aphria will pay C$8.50 per share to Nuuvera shareholders, a 21.4 percent premium to Nuuvera’s Friday close.
Clarus Securities was strategic adviser and Stoic Advisory was financial adviser to Aphria. Stikeman Elliott LLP acted as the company’s legal counsel.
Canaccord Genuity was financial adviser and Norton Rose Fulbright Canada acted as legal counsel to Nuuvera.
$1 = 1.2335 Canadian dollars Reporting by Anirban Paul in Bengaluru; Editing by Saumyadeb Chakrabarty and Martina D'Couto