A byline by Michael Sassano
Europe has officially become a hotbed of merger and acquisition (M&A) activity in 2026. If the market was already warming up, the U.S. just poured gasoline on the fire with its move to reschedule cannabis to an internationally recognized medical standard. Global markets like Germany have finally entered a phase of stability and moderate regulatory certainty as leading countries prove that sensible cannabis rules actually work.
The numbers we are seeing are significant enough to draw the full attention of the largest U.S. and Canadian operators, who are all desperately looking for their next major growth phase. One thing is absolutely certain: this is only the beginning, and there will be a very limited number of seats at the table.
The European and Global Growth Engine
European and global cannabis is surging, and the data is impossible to ignore. Let’s look at the „big three“:
- Germany: Sales skyrocketed by 155% in 2025, reaching nearly $1 billion ($997 million). Looking ahead, the 2026 targets are set well above the $2 billion mark.
- The UK: The British market saw a 104% increase in 2025, bringing in an estimated $298 million in sales. Expectations for 2026 range from another 50% to 100% increase.
- Australia: This market reached $656 million in 2025. While this was an 8% increase from the previous year, it’s crucial to note that this growth successfully absorbed a massive 40% price compression.
Beyond these giants, older and newer countries are coming online rapidly. Markets like Israel ($372 million) and Poland ($68 million) are expanding alongside Thailand, Brazil, Switzerland, Italy, Spain, France, Ireland, Czech Republic, and more. All of these markets can be serviced through high-quality EU-GMP medical products.
These common-sense medical policies aren’t just providing critical access to patients in need. They are actively creating jobs, building a strong taxable base, and crushing the grey markets by providing safe, regulated alternative products.
The Canadian Playbook: Buying Distribution
Canada has always been a strong trading partner with Europe. Thanks to their GACP and GMP medical rules, Canadian producers can trade directly from their home bases to the EU and other global markets. For them, the strategy is straightforward: they don’t need to invest in cultivation and manufacturing abroad; they simply need to develop and buy distribution partners.
The dominant Canadian groups—like Aurora, Canopy, and Tilray—have already staked their claims in the EU. They aren’t looking for the massive vertical integration that American companies will ultimately need. They just need more outlets to sell their product.
We’ve seen some high-profile buys recently that have sparked both excitement and valuation concerns:
- Organigram (backed by its partnership with Jupiter and British American Tobacco) purchased the German distributor Sanity for €113.4 million, with a massive earn-out of €113.8 million. They are also investing in UK and Australian distribution to push products abroad as part of a greater corporate drive.
- High Tide acquired 51% of the German distributor Remixian for €26.4 million. This purchase provides a higher EBITDA and growth engine for the Canadian dispensary operator.
- Cronos made a €57.5 million bet on recreational cannabis by acquiring CanAdelaar in the Netherlands. Although a non-medical move, this purchase has a feeling of a first, not last EU play.
Buyout talks are continually occurring with all the largest groups right now, though there are only a few Canadian companies left with the actual capital to make these purchases.
The American Blueprint: The Full Vertical Value Chain
In the U.S. and Canada, the medical framework has been around since the dawn of legalization. But due to the fragmented, state-by-state rules in the USA, American companies have had to follow whatever unique trends developed locally—shifting from medical straight to recreational as states evolved.
The latest U.S. rescheduling has sparked an intense debate about what comes next, and all eyes are now turning to Europe. Currently, Curaleaf is the only U.S. company that has gone heavily into Europe, with over 10% of its revenue now coming from overseas. Curaleaf’s Chairman, Boris Jordan, who recently stated that their EU business boasts a $1 billion enterprise value, created another calculated stir amongst US operators.
Curaleaf has built a true, fully vertically integrated platform, taking the U.S. Multi-State Operator (MSO) model and applying it globally. They handle everything from cultivation to manufacturing, and have developed dedicated sales and distribution networks in specific countries.
- In the UK, they operate a full clinic, distribution hub, and specials manufacturing setup, making it vastly easier to get their products sold directly to patients.
- Germany remains their largest unit, heavily driven by flower sales through their own distribution network, which was further strengthened by a strategic grow purchase in Canada.
- They also recently acquired their Polish distributor to complete the vertical chain in that rapidly emerging market.
Curaleaf has laid a highly successful blueprint for capturing margin by buying out its trading partners as countries develop. It is only a matter of time before heavyweights like Verano, GTI, Trulieve, and Cresco enter Europe with full vertical purchases of their own. However, there are increasingly fewer interesting buying opportunities left on the board and one known private vertical for US companies to buy, besides piecing together a vertical.
The Spotlight Shifts
Europe has been quietly growing in the background for many years, but the spotlight is shifting incredibly fast. Consistent growth and significant sales volumes are major factors driving this new wave of investment attention toward true growth markets.
Now that the U.S. has finally made its move to recognize medical cannabis, other nations are aggressively looking at their own policies to catch up with the times and replicate these successful programs. The M&A activity is following the rhythm of those drumbeats, and all avenues lead to Europe and the global medical markets as the next great growth sector.
About the author
Michael Sassano is one of the most respected executives in the pharmaceutical cannabis space today. Currently, Michael serves as Interim CEO and Chairman of the Board for SOMAÍ, a leading EU-GMP vertically integrated Multi-Country Operator (MCO) company with a global distribution footprint for the largest and most advanced EU-GMP-certified cannabinoid-containing pharmaceutical extract portfolio.
Somaí is set to launch multiple versions of Oral Gums from October through January. The lineup will include medical Somaí extract and terpene Oral Gums, Rosin Oral Gums, and fast-acting Oral Gums. In addition, Cookies, Sherbinskis, and Jack Herer-branded Oral Gums will roll out across three countries.
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