Brazil’s competition authority has approved the merger between Petz and Cobasi, the country’s two largest pet products retailers, subject to restrictions. The decision was issued on Wednesday by the Administrative Tribunal of the Administrative Council for Economic Defense (CADE), marking a shift from the authority’s earlier position, which had been to clear the transaction without conditions, Reuters reported.
The approval introduces remedies despite CADE having indicated in June that it intended to grant unconditional clearance. Under the terms of the transaction, shareholders of Petz will retain a majority stake in the combined entity, which is expected to operate approximately 480 retail stores nationwide.
The deal represents a consolidation in Brazil’s pet retail market and is expected to reshape competitive dynamics in the sector. The specific restrictions imposed by CADE were not detailed in the initial announcement.