Petz-Cobasi merger approved in full, set to transform pet retail in Brazil

Brazil’s Administrative Council for Economic Defense (CADE) has granted unconditional approval to the merger between Petz and Cobasi, clearing the way for the 2 pet retailers to combine their businesses.

The antitrust authority concluded that the operation poses no significant risk to competition in the pet retail market. While CADE acknowledged that the deal generates “significant” market concentration in some areas, it emphasized the dynamic nature of Brazil’s offline pet retail landscape and the presence of numerous competitors.

“It is unlikely that Cobasi and Petz will exercise market power in the post-transaction scenario,” it states.

“This scenario reinforces the assessment that the chains involved in the merger will not have room to impose negative changes in market conditions, such as prices, supply, or quality, at the risk of losing market share to other players in the sector,” the report adds.

The decision was issued on 2 June by CADE’s General Superintendence. There is now a 15-day window in which the case may be referred to CADE’s Tribunal for further review.

Nationwide reach

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

The merger is going to result in one of the largest pet retail groups in Latin America. The combined entity is expected to operate 494 stores across 140 Brazilian cities and generate R$6.9 billion ($1.3B/€1.2B) in net revenue.

Both Petz and Cobasi are well-known for their nationwide reach and multi-channel strategies, giving the merged group significant scale and bargaining power in the market.

Petz saw its net revenue increase by 8% in the first quarter of 2025, with private label revenue growing 31% following the launch of 200 new stock keeping unit (SKUs). The company’s expansion of its private label assortment and in-store service offerings has been identified as a key driver of growth.

According to Petz, this strategy is expected to play an even larger role after the merger, with new opportunities to cross-leverage expertise and best practices between the 2 players.