Brazil’s Administrative Council for Economic Defense (CADE) has approved the merger between Petz and Cobasi, subject to the execution of a Concentration Control Agreement (ACC). The approval, issued on 10 December, is conditional on a package of remedies that includes the divestment of 26 retail stores located in the state of São Paulo.
The transaction brings together two of Brazil’s largest retail groups specializing in pet products and services. Both Petz and Cobasi operate extensive networks of physical stores and digital platforms offering pet food, medicines, hygiene and beauty products, accessories, and other pet-related items. Their activities also extend to veterinary care and grooming services, as well as the sale of plants, flowers, and convenience goods. In addition, Petz maintains industrial and wholesale operations through its Petix and Zee.Dog brands.
The reporting councilor, José Levi, highlighted that the divestment commitments set out in the ACC were central to addressing the competitive concerns identified during CADE’s review of the transaction. According to Levi, the remedies ensure adequate competitive conditions in the market and result in a more competitive environment in the physical pet retail segment than would otherwise prevail. He described the outcome as a meaningful gain for the public interest, competition, and consumer protection.
In his analysis, Levi also referred to a comparable case reviewed by the Italian competition authority in 2022, involving the merger of pet retail chains Arcaplanet and MaxiZoo. That transaction, which combined more than 500 stores across Italy, was likewise approved subject to remedies designed to preserve effective competition, reflecting an approach consistent with CADE’s assessment in the present case.
Cobasi, founded in 1985, operates approximately 230 stores across several Brazilian states, with a particularly strong presence in São Paulo and in the South and Southeast regions. The Petz Group operates 257 physical stores, in addition to veterinary centers, grooming services, franchised Zee.Dog units, and digital sales platforms. Petz also manufactures and markets pet products and provides animal training and wellness services.
The merger will be implemented through the incorporation of Petz’s shares by Cobasi. Following completion of the transaction, the current shareholders of Petz and Cobasi will hold 52.6% and 47.4% of the combined entity, respectively, with Petz becoming a wholly owned subsidiary of Cobasi.