Brasília, December 11, 2025 — Brazil’s CADE has approved the merger between pet retail chains Petz and Cobasi, subject to a remedies package that includes the divestment of 26 stores in the state of São Paulo.
The transaction, reviewed by CADE’s tribunal, combines two of the largest specialized pet retailers in Brazil, both of which operate extensive physical store networks and digital sales channels offering pet food, medicines, hygiene products, accessories, and related services.
CADE conditioned clearance on the signing of a merger control agreement requiring the divestments, which the authority said were necessary to address competition concerns in local retail markets, particularly in São Paulo, where both companies have a strong presence.
Reporting commissioner José Levi said the remedies were decisive in mitigating the risks identified during the review. He stated that, following the divestments, competition in physical pet retail markets would be stronger than under the pre-merger scenario, benefiting consumers and preserving effective rivalry.
Levi also pointed to international precedent, noting that the approach mirrors a 2022 decision by the Italian competition authority, which approved the merger of pet retail chains Arcaplanet and Maxi Zoo subject to remedies aimed at safeguarding competition.
Cobasi, founded in 1985, operates around 230 stores nationwide, with a concentration in São Paulo and the southern and southeastern regions. Petz runs 257 physical stores, veterinary centers and grooming services, alongside wholesale and manufacturing operations through brands including Petix and Zee.Dog.
Under the approved structure, the deal will be implemented through the incorporation of Petz shares into Cobasi. Upon completion, Petz shareholders will hold 52.6% of the combined company, while Cobasi shareholders will own 47.4%, with Petz becoming a wholly owned subsidiary of Cobasi.
