Cade Clears Petz–Cobasi Merger With Order to Sell 26 São Paulo Stores

Overview

• The tribunal approved the deal by majority vote under an ACC that requires divesting 26 Petz units in São Paulo, equal to about 3.3% of the combined company’s revenue.
• Beyond the store sales, the ACC includes behavioral commitments such as limits on exclusivity, with Cade stating it will track compliance and market effects closely.
• Councillor Camila Cabral Pires Alves dissented in part, and discussions referenced DEE studies that had pointed to broader divestments across the country.
• Rival Petlove, which appealed the case to the tribunal, argued that selling 26 stores is insufficient after seeking divestment of more than 100 units; it has signaled interest in buying the assets, and another potential buyer was also noted.
• The merged retailer is projected at roughly R$7 billion in annual revenue with about 480–483 stores; Petz shareholders will hold 52.6% and Cobasi 47.4% with a R$400 million payment, and closing remains subject to suspensive conditions and execution of the divestitures.