Updates on the analysis of the merger between PETZ () and by the Administrative Council for Economic Defense (Cade) signal to a more complex case than it could be predicted for months. Although groups show optimism regarding the rectification of the body’s superintendence decision by approving the operation without restrictions, the conclusion of the counselors must extrapolate the initial period for the completion of the analysis.
On August 29, Cade approved the extension of the legal deadline to complete the case analysis, which would initially end on October 3. Last Thursday (4), the rapporteur José Levi Mello do Amaral Júnior requested the elaboration of one.
“The complexity of the operation has not changed, it was always a difficult case,” argues the partner of GO Advogados and former president of Cade, Gesner Oliveira, for whom it is reasonable that Cade seeks to understand more details of the market dynamics involved in the merger.
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And two main factors justify this: first, the superstone model – large units with wide supply of products – implemented by PETZ and Cobasi; Second, the strength of companies in the digital market.
In June, Cade’s General Superintendence even approved, unrestricted, a merger between the two companies, assessing that in addition to having few entry barriers, the sector would be highly sprayed in small businesses, neighborhood pet shops.
The same argument was used from the beginning by the two companies and the market: “Market concentration is irrelevant. In some categories, Petz and Cobasi mean almost nothing”, in a video of the market last year.
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It turns out that, after the operation of the operation by the General Superintendency, Petlove, third place in the PET market, filed a resource for review of the decision claiming that the agency has adopted very comprehensive definitions for the retail of pet products, including small businesses and marketplaces in the same basket as superstors.
“The fact that the petshops market is sprayed, in this case, is a factor of competitive concern, because even if there are several trades of lower neighborhoods, they do not have the ability to compete with the superstors,” says Gesner Oliveira. One of the main reasons is the portfolio. Although consumers can find some popular brands in neighborhood pet shops, they cannot access the variety of premium superstors.
In a note sent to InfomoneyPETZ says it trusts in a ratification of the decision of the General Secretariat of the agency based on the technical analysis of the General Superintendence. “Petz and Cobasi together account for less than 10% of the pet market, which is highly sprayed with a strong presence of small neighborhood petshops and medium and large networks, wide supermarket participation and growing digital marketplaces competition.”
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One of the risks raised by experts, however, is that the resulting company’s bargaining power with suppliers is not despicable even with market share by about 10%. “On the side of suppliers, denying a player that represents such a significant market portion may not be an option,” says Oliveira.
In a survey based on the Gross Upward Pricing Method Pressure Index (GUPPI), GO Associados estimates that there would be a more likelihood than 5% in the price increase in 92% of stores – the 5% value is the base used by Cade to generate competing concerns.
Fernando Furlan, also former Cade president, evaluates the rapporteur’s decision to deepen the case analysis, especially due to online sales, where Petz is especially strong. Cade estimates that the market share of the two companies together in online commerce is between 40% and 50% – given that it disregards smaller pet shops, agrolojas and veterinary clinics.
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Sales through the digital channel resulted in R $ 871 million in gross revenue only for PETZ in the first half of 2025 – or 42% of the total. In the case of Cobasi, sales by online channel total $ 634 million, close to 38% of the total. Both have noted growth in digital channel participation in their total sales in the last year.
