Cade Holds Petz–Cobasi Merger Hearing as Rapporteur Says No Consensus Yet

Overview

• Cade’s tribunal held a public hearing in Brasília where company executives, a rival, NGOs and government representatives presented opposing views on the proposed combination.
• The rapporteur, José Levi Mello do Amaral Jr., said the case is in complementary instruction with new market tests, following a technical approval by the Superintendência-Geral in June and a 90-day review extension granted in August.
• Petz and Cobasi executives argued they have lost ground to large marketplaces, said the sector is fragmented, and claimed the deal would lower costs and sharpen competition for consumers.
• Petlove and economists countered that the two are each other’s main rivals, warning the merger could raise entry barriers, strengthen omnichannel power and enable price increases.
• A federal official recommended safeguards if the deal is cleared, including price monitoring and measures to preserve supplier diversity and affordability, while the rapporteur signaled any remedies should be proposed by the parties and third parties.