Brazil: Petz awaits verdict on merger with competitor Cobasi
With a projected 10% market share, both pet retailers remain optimistic as the antitrust body consider conditions for approval.
Brazilian pet retailer Petz remains confident that the current analysis by the Administrative Council for Economic Defense (CADE), the country’s competition regulator, of the merger with its competitor Cobasi will result in a positive outcome.
Petz CEO Sergio Zimerman believes the technical analysis “will prove that the merger raises no competitive concerns.”
“The operation will benefit pet parents and pets with even more competitive prices,” he says.
The proposed tie-up is subject to an antitrust review by CADE, which has been seeking feedback from stakeholders, including retailers and suppliers. This recently included the addition of rival pet retailer Petlove as an interested party.
The chances
The new entity, with 494 stores in 140 Brazilian cities, is expected to generate R$6.9 billion ($1.3B/€1.2B) in net revenue.
An article from Brazilian business publication Valor International, citing “officials familiar with the process,” suggested that the likelihood that a single company could significantly impact prices was low and that there is a strong chance that the merger will be approved.
“If the merger is approved, the resulting company will have about 10% market share in a highly competitive market with diverse and sophisticated players, including large, medium, and small stores, marketplaces, supermarkets, and other agents with established brands.”
GlobalPETS reported in August 2024 that a Brazilian financial market consulting firm suggested that the competition regulator may require closing or selling 11 stores, mainly in São Paulo, before approving the transaction.
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