The reclassification of cannabis in the United States triggers a wave of mergers and acquisitions

A wave of consolidation is reshaping the’american cannabis industry, with mergers and acquisitions gaining momentum after the decree signed on December 18 by President Donald Trump asking federal authorities to reclassify cannabis under US law.

While many of the deals announced in recent weeks had been in the pipeline for months, industry analysts believe that the decree has acted as a catalyst, unblocking deals that had remained in limbo due to regulatory uncertainty and tightening financial markets.

According to many observers, this burst of activity is merely a harbinger of deeper structural changes to come, particularly once the federal reclassification is officially completed. Until then, operators continue to navigate a highly competitive market with limited access to financing, even as expectations of a more favorable investment climate rise.

The presidential decree, a catalyst for confidence

«The signed agreements we're seeing are agreements that we've been working on for some time now, and the signing of the presidential decree was the catalyst that allowed them to be concluded,» said Avis Bulbulyan, CEO of consulting firm Siva, à MJBizDaily. He added: «Over the next couple of months, we're going to see the conclusion of deals for which the signing of the decree was the catalyst to start looking at transactions.»

This renewed confidence was immediately apparent. The very day the decree was signed, Curaleaf saw its $110 million expansion project in Virginia collapse after a hedge fund submitted a higher bid. For some analysts, this episode illustrated how quickly valuations and competitive dynamics began to change as soon as federal guidance became clearer.

As Frank Colombo, General Manager of Viridian Capital Advisors, The reclassification will kick-start M&A activity, but the dynamics of this process could mean it takes some time.

Vireo and the return of large-scale transactions

One of the most closely watched transactions was the acquisition by Vireo Growth from Eaze, once dubbed the «Uber of cannabis», in an all-stock deal worth $47 million. Formerly valued at nearly $700 million, Eaze provides Vireo with a delivery infrastructure that has processed more than 12 million orders, as well as 65 points of sale in France. California, in Florida and Colorado.

«The addition of Eaze gives us immediate scale in two of the country's largest cannabis markets and strengthens our position in Colorado,» said Vireo CEO John Mazarakas.

The relatively modest price surprised some investors, but was widely interpreted as a sign of a return to cautious optimism in mature markets, particularly in California, where high taxes and illegal competition have weighed heavily on legal operators.

Consolidation of the edible products sector: Wyld and Grön

Consolidation also affected the edible products, a market estimated at $4.8 billion. The company Wyld, based in Portland, announced the acquisition of the Grön, also from Oregon, bringing together two of the best-known names in infused confectionery.

«This acquisition is aimed at developing an already successful brand,» said Aaron Morris, founder and CEO of Wyld. Grön will continue to operate as a separate brand, its portfolio of premium chocolates complementing Wyld's gum and solvent-free products. On completion of the transaction, the merged company will employ around 1,400 people and be present in thousands of outlets across North America.

Brand house strategies expand

Elsewhere, California-based Sunderstorm, best known for its edible products KANHA, has acquired the pre-roll specialist Lime, This marks its expansion into a third major product category. Founded in 2019, Lime has established a strong retail presence in California and will remain an independent brand within Sunderstorm's growing portfolio.

«With this acquisition, we reinforce a strategy designed to win in 2026,» said Cameron Clarke, co-founder and CEO of Sunderstorm. «The next chapter of cannabis will be defined by execution, not hype.»

Consolidation through M&A?

While the infrastructure acquisitions have dominated past waves of consolidation, analysts expect future transactions to focus more on the brands, the intellectual property and complementary business models.

As Mr. Bulbulyan noted, «in the future, you'll see fewer infrastructure-related transactions and more projects where business and revenue models, intellectual property and existing infrastructure are brought together in a meaningful way.».

If the federal reclassification goes according to plan, the current wave of transactions could soon be just the first chapter in a much broader transformation of the cannabis M&A landscape.