(Reuters) – Cannabis producer Green Thumb Industries (OTC:) is ready to submit an offer for a potential merger deal with US-based brewer Boston Beer (NYSE:), according to a letter seen by Reuters.
The merger will allow the cannabis production company, currently listed in Canada, to also be listed on a major U.S. stock exchange, Green Thumb CEO Ben Koffler said in a letter to Boston Beer founder Jim Koch on June 2.
Green Thumb's move comes after Boston Beer said it was “fully focused” on its business as an independent company after the Wall Street Journal reported on Friday that Japanese whiskey maker Suntory Holdings is in early talks to acquire the US brewer.
But Suntory said it was not in negotiations to acquire Boston Beer.
In Kovler's letter to Koch, sent after the Wall Street Journal's report on Suntory's interest, he said Green Thumb would be able to make a “better and more valuable offer” to Boston Beer.
Koch, who also serves as chairman of Boston Beer, has 100% of the voting rights in the company's Class B stock, according to Jefferies.
Earlier Tuesday, the Wall Street Journal first reported on Green Thumb seeking a merger with Boston Beer Company.
Green Thumb, responding to the WSJ report, said in a statement that it would not comment. Boston Beer also declined to comment when contacted by Reuters.
The Wall Street Journal reports that it may be difficult to reach an agreement between Boston Beer and Green Thumb, given that cannabis consumption remains illegal at the federal level in the United States.
Green Thumb's Koffler also noted in the letter that the merger with Boston Beer will help the companies venture into multiple product categories including pre-rolls, edibles and beverages, as well as vapes, concentrates and topicals.
Shares of Boston Beer, which have a market value of about $3.6 billion, fell slightly in afternoon trading. Including session moves, they are down about 4% since the market closed on Friday.