(Reuters) –Cannabis producer Cresco Labs, (OTC) Inc announced Wednesday that it will buy rival Columbia Care (OTC) Inc in a $2B all-stock deal. This would make Columbia Care the biggest U.S. marijuana company by total sales.

Cresco would be the market leader in an industry that is expected to grow to $46 billion by 2026 due to the legalization of pot in New York and New Jersey.

For each unit that is held, Columbia Care investors receive 0.5579 shares from Cresco Labs. This represents an almost 16% premium based on Cresco’s Tuesday closing price.

According to Reuters, the deal values Columbia Care’s equity at C$1.36 Billion ($1.07 Billion).

According to people familiar with the situation, the purchase would need significant divestitures because the footprints of the two companies overlap in many states including New York. Only 10 cannabis licensed firms exist there.

However, they did not mention the matter in their reports.

Both are listed in Canada, but they can trade in America over-the-counter. Because marijuana is still illegal at the federal level and there are no large U.S. stock markets that allow businesses to grow and sell it, the U.S. stock market cannot permit them to list shares.

Cresco stated that it anticipates having annual revenues exceeding $100 million by 2023 in eight states on a pro forma basis.

On Wednesday, the company reported fourth-quarter revenues of $218million, which was below analysts’ average estimate at $234.7 million according to Refinitiv data.

($1 = 1.2583 Canadian dollars)