Business · Companies · 2 hrs ago
Organigram agrees to buy Aurora Cannabis in $561 million deal
Organigram has agreed to buy Aurora Cannabis in a deal valuing the Canadian cannabis company at $561 million.
Aurora shareholders can choose cash, Organigram shares or a combination, subject to limits on the total cash and shares available.
The companies say the deal would combine Aurora’s global medical cannabis business with Organigram’s Canadian operations and growing international presence.
Both companies’ boards support the transaction, which follows Curaleaf’s rival hostile offer for Aurora; Curaleaf says its offer remains open and argues it offers better value.
Organigram and Aurora expect the combined company to generate more than $50 million in synergies through measures such as cross-selling and shared purchasing.
The deal is expected to close in January 2027, subject to shareholder and regulatory approvals and permission from the Supreme Court of British Columbia.
Organigram Global has agreed to buy Aurora Cannabis in a deal valuing Aurora at $561 million.
Aurora shareholders can choose cash, Organigram shares or a combination, subject to limits on the total cash and shares available.
The boards of both companies unanimously support the transaction.
The companies say the deal will create more than $50 million in synergies and combine their operations and international reach.
The agreement follows an unsolicited takeover bid from Curaleaf, which says its enhanced offer remains outstanding.
The deal is expected to close in January 2027, subject to shareholder, regulatory and court approval.
- Who
- Organigram Global Inc. and Aurora Cannabis Inc. agreed to the deal. Curaleaf Holdings Inc. has made a competing offer.
- What
- Organigram will buy Aurora in a deal valuing it at $561 million. Aurora shareholders can choose $7.80 per share in cash, 5.8626 Organigram shares per share or a combination.
- When
- The deal was announced on Nov. 3, 2026. It is expected to close in January 2027.
- Where
- Not stated
- Why
- Organigram says the deal will help build a global cannabis leader. The companies cite complementary operations, international growth and more than $50 million in expected synergies.
Organigram and Aurora
Curaleaf
Value and merits
Organigram and Aurora
The companies say their combination offers compelling value and will create a larger, more diversified business.
Curaleaf
Curaleaf says its enhanced offer represents better value and offers a stronger combined business.
Transaction details
Organigram and Aurora
The companies say the deal has unanimous board support and is expected to close in January 2027, subject to approvals.
Curaleaf
Curaleaf says it is awaiting material details, including any break fee, future management and board composition, and investor rights for BAT.
Curaleaf took its hostile offer directly to Aurora shareholders.
Aurora urged shareholders to reject Curaleaf’s bid, saying it undervalued the company and was not in shareholders’ best interest.
Curaleaf amended its offer, proposing 0.4013 Curaleaf shares plus US$1 cash for each Aurora share.
Organigram and Aurora announced their agreement, while Curaleaf said its enhanced offer remained outstanding.
- Deal value
- $561 million
- Cash option
- $7.80 per Aurora share
- Share option
- 5.8626 Organigram shares per Aurora share
- Cash available
- Capped at $253.6 million
- Expected synergies
- More than $50 million
- Expected closing
- January 2027
3 sources
What people are saying
By bringing together Aurora’s established global medical cannabis platform with our Canadian operations and growing international footprint, we are creating a larger, stronger, and more diversified company,
Combining with Organigram will accelerate Aurora’s international growth strategy by strengthening commercial execution, expanding our product and (research and development) capabilities, and extending our global operating network,
Curaleaf believes its offer represents better value, offering a superior combined business with a stronger capital markets profile, greater certainty and speed to close, and greater anticipated synergies.