The prediction that Canadian marijuana producers’ growth will explode because of a global pot shortage is forgetting one important argument, according to BNN Bloomberg commentator Andrew McCreath.

“It’s a crop. It’s grown everywhere in the world,” McCreath said Tuesday. “Do you think the Germans, the Americans are going to allow Canadian companies to dominate their marijuana business? It’s a crop – it’s not like there’s heavy duty intellectual property involved here.”

McCreath’s comments come after Aurora Cannabis announced Monday it has struck a $3.2-billion, all-stock deal  to buy rival licensed marijuana producer MedReleaf, in a transaction that the target company’s CEO said will create an “undisputed world leader in cannabis.” Aurora chief corporate officer Cam Battley added that the company sees a huge shortage of cannabis supply globally.

“Of course there’s not a global shortage of marijuana, give me a break,” McCreath said. “So consequently, the stocks are egregiously overvalued relative to what they’re going to be worth three, four years from now when they have to pay taxes and they’re going to trade on a P/E multiple.” 

McCreath’s comments echo those of Canopy Growth CEO Bruce Linton, who told BNN Bloomberg Monday that his company views current M&A valuations in the marijuana sector as “relatively higher than the assets we think we’d be getting.” 

Aurora and MedReleaf would have a combined market capitalization of roughly $7 billion, based on their values as of the close of trading Monday.