Brazil’s antitrust authority CADE’s administrative tribunal approved on Wednesday the merger of the country’s two largest pet product retailers, Petz and Cobasi.
- CADE approved the deal with restrictions, after having decided in June to “clear the transaction unconditionally.”
- The deal was approved throught the execution of a merger control agreement which foresees the sale of 26 stores in the state of Sao Paulo, Petz said in a filing.
- The divestment represents 3.3% of the combined company’s revenues in the last 12 months.
- The agreement also cites “certain behavioral commitments”, which were not detailed by Petz.
- Petz shareholders will hold a majority stake in the combined company, which will own some 450 stores after the divestment.
- Sao Paulo-traded shares of Petz were up 2.4% midday after the deal’s approval, while benchmark stock index Bovespa was up 0.2%.
