Diddy’s $185 Million Investment To Create Largest Black-Owned Cannabis Company Falls Through After Failed Agreement

Diddy

Diddy’s $185 Million Investment To Create Largest Black-Owned Cannabis Company Falls Through After Failed Agreement

It looks like Diddy’s plans on launching the biggest Black-owned cannabis company have been put on pause.

According to reports, Cresco Labs Inc. and Columbia Care Inc. have abandoned their $2 billion merger, which has now affected the $185 million investment Diddy made last year into the cannabis operations that the companies would’ve handled.

As part of the deal, Diddy (born Sean Combs) was set to snag several marijuana retail stores and production facilities in New York, Massachusetts, and Illinois. He would have also taken ownership of one production facility in each of the three states.

According to CNBC, the Cresco Labs and Columbia Care merger would have created the largest US cannabis company, but it was called off over concerns about regulatory issues and the strength of the economy. Due to the failed merger, Diddy’s deal is also off the table.

Diddy

Diddy’s team told TMZ that his Combs Global empire is still determined to find opportunities that will “diversify” the cannabis industry, and he will continue looking for a company that will be a good fit.

Charles Bachtell, CEO and co-founder of Cresco Labs, had this to say about the failed merger:

“In light of the evolving landscape in the cannabis industry, we believe the decision to terminate the planned transaction is in the long-term interest of Cresco Labs and our shareholders.”

He continued,

“We want to express our sincere gratitude to Columbia Care for their valuable collaboration and dedication during this transaction.”

Back in November 2022, Diddy announced the deal stating:

“My mission has always been to create opportunities for Black entrepreneurs in industries where we’ve traditionally been denied access, and this acquisition provides the immediate scale and impact needed to create a more equitable future in cannabis.”

He continued,

“Owning the entire process — from growing and manufacturing to marketing, retail, and wholesale distribution — is a historic win for the culture that will allow us to empower diverse leaders throughout the ecosystem and be bold advocates for inclusion.”

The failed cannabis deal is the latest setback for Diddy. In May, the Bad Boy Records CEO filed a lawsuit against liquor company Diageo over claims that the company has neglected him and his tequila brand DeLeon due to racial discrimination. However, the UK-based alcohol company soon fired back and said that Diddy’s accusations are false and his “bad-faith actions” breached his contracts. Diageo also ended its partnership with Diddy.

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