(Reuters) – Cannabis producer Green Thumb Industries (OTC:) is ready to make an offer for a possible merger with US brewer Boston Beer (NYSE:), according to a letter seen by Reuters.
Green Thumb CEO Ben Kovler said in a June 2 letter to Boston Beer founder Jim Koch that the combination would allow the cannabis producer, which is currently listed in Canada, to also be listed on a major U.S. exchange.
Green Thumb’s decision comes as Boston Beer said it is “fully focused” on its business as an independent company after the WSJ reported Friday that Japanese whiskey maker Suntory Holdings is in early talks to acquire the American brewer.
Suntory, however, said it is not in talks to acquire Boston Beer.
In Kovler’s letter to Koch, which was sent after the WSJ reported Suntory’s interest, he said Green Thumb would be able to make a “better and more valuable offer” for Boston Beer.
Koch, who is also Boston Beer’s chairman, has 100% voting rights in the company’s Class B shares, Jeffries said.
Earlier Tuesday, the WSJ first reported that Green Thumb was planning a merger with Boston Beer.
Green Thumb responded to the WSJ report by saying it would not comment. Boston Beer also declined to comment when contacted by Reuters.
A deal between Boston Beer and Green Thumb could be difficult to pull off given that cannabis consumption remains illegal at the federal level in the US, WSJ reports.
Green Thumb’s Kovler also noted in the letter that the merger with Boston Beer will help the companies expand into multiple product categories, including pre-rolls, edibles and beverages, as well as vapes, concentrates and topicals.
Shares of Boston Beer, which has a market capitalization of about $3.6 billion, were down slightly in afternoon trading. On a session basis, they are down about 4% since the market closed on Friday.