Cannabis Merger Between Cresco and Columbia Care Falls Through, Dashing Industry Hopes

Cannabis multistate operators Cresco Labs and Columbia Care have called off their $2 billion merger, citing the evolving landscape in the cannabis industry. The deal, which would have created the largest cannabis company in the U.S., fell through after the companies failed to divest enough assets for regulatory approvals. Both companies will focus on their core businesses amidst a downturn in the industry, which is facing economic and regulatory challenges. The cancellation also affects a $185 million deal with Sean "Diddy" Combs. The cannabis industry is awaiting banking reform, such as the Secure and Fair Enforcement Banking Act, to address the lack of federal regulation and access to traditional banking services.