The Administrative Council for Economic Defense (Cade) requested additional information about the merger between the two largest pet shop chains in the country, Petz () and Cobasi, which could delay approval.
According to a report in the newspaper O Globo, the general superintendent of the municipality, Alexandre Barreto, assessed that a series of documents are missing so that the analysis of the deal can be carried out.
The was announced in August 2024. Petz will hold 52.6% of the combined company, while Cobasi will hold 47.4%.
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However, XP highlights that the protocol has not yet been published and, therefore, the count has not officially started. The first information was that the initial period of 240 days would be reset, but that was not the case.
Although the amendment does not appear to interrupt the process, in XP Investimentos’ assessment, it may be a sign of a more cautious approach to the merger by CADE, which may require a longer analysis period and/or more stringent remedies. As a result, the broker now expects the transaction to close in the second half of 2025.
Although BTG’s base scenario is still approval of the agreement, the longer time for Cade to evaluate the merger could have a negative impact on Petz’s share price.
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Although it believes that the Petz-Cobasi merger (which should dictate share performance in the coming months) could lead to a more rational market and synergies, BTG highlights that the market remains highly fragmented.
