Petlove appeals approval of Petz-Cobasi merger

Petlove has appealed the recent decision from the Administrative Council for Economic Defense (CADE) granting unconditional approval for the merger between pet retailers Petz and Cobasi.

The appeal, filed on 18 June 2025, argues that the 2 companies are currently the dominant players in the pet market and the only ones that effectively compete with one another.

“Once the competition between them is eliminated, they will be free to raise prices and could pressure suppliers to serve their own interests rather than those of consumers,” a company spokesperson tells GlobalPETS.

According to the retailer, the market analysis made by the authorities before approval of the transaction overlooked “the differences in scale between Petz and Cobasi megastores and small neighborhood pet shops.”

“These differences result in variations in pricing, product portfolios and competitive strategies,” it adds.

After over 3 years of discussions, Petz and Cobasi announced their merger process in April 2024.

Irreparable damage?

Petlove has also requested that Brazil’s antitrust watchdog conduct a more in-depth analysis of the relevant market than the one carried out by the antitrust General Superintendence, which concluded that the operation posed no significant risk to competition in the pet retail market.

Petlove considers that CADE should reject the current merger to prevent “irreparable” harm to competition and consumers.

“Any approval of the Transaction would require a robust and extensive package of remedies – both structural and behavioral – sufficient to create an effective rival to the merged company.”

Brazil’s CADE now has until 1 January 2026 to conclude a review of the case. Until then, the merger is temporarily on hold until the final decision by CADE’s Tribunal.

Petz view

Cobasi and Petz are aware of the appeal and expressed “confidence” in the decision of the board members.

“The transaction was approved without restrictions, as there is no competitive risk in a fragmented and competitive market,” a Petz spokesperson tells GlobalPETS.

The merger of the pet retailers is expected to create a new leader in the largest market in South America, with a combined revenue of R$6.9 billion ($1.32B/€1.15B) and a combined network of nearly 500 stores.