Brazil Antitrust Tribunal Clears Petz–Cobasi Merger With Sale of 26 São Paulo Stores

Overview

• The approved agreement requires divesting 26 Petz units in São Paulo, equal to 3.3% of the combined company’s revenue, with no Cobasi store sales planned.
• The Tribunal’s decision was by majority, as counselor Camila Cabral Pires Alves dissented in part, warning many local markets would still face competitive concerns.
• The remedies include behavioral commitments such as limits on exclusivity clauses, and Cade said it will track effects on prices, product variety, and new entry.
• Rival Petlove opposed the merger, urged up to 105 divestitures in São Paulo, and expressed interest in buying the assets, with Cade noting at least one other potential buyer.
• The combination will create a group with roughly R$7 billion in annual sales and more than 480 stores, and the closing still depends on board verifications and suspensive conditions.