Constellation Brands Inc. is spending C$5 billion ($3.8 billion) to increase its stake in cannabis grower Canopy Growth Corp. in what the owner of Corona beer described as the biggest investment yet in the burgeoning marijuana industry.
Constellation will raise its stake in Canopy to 38 percent, it said Wednesday in a statement. The agreement, which could eventually give the Victor, New York-based beverage company control, follows an initial purchase of a 10 percent stake in the Canadian grower last year.
“Over the past year, we’ve come to better understand the cannabis market, the tremendous growth opportunity it presents, and Canopy’s market-leading capabilities in this space,” Constellation Chief Executive Officer Rob Sands said.
Makers of alcoholic beverages, searching for new sources of growth as their traditional business slows in many developed markets, are looking to cannabis as Canada and some U.S. states ease regulations.
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