The founder and president of Petz, Sergio Zimerman, described as an acceptable remedy the decision of Cade (Administrative Council for Economic Defense) to approve, with restrictions, the merger of the company with Cobasi.
The union of the two major megastore chains selling pet products and services will create a company with a combined turnover of 6.5 billion reais in 2024 and more than 500 units. Cade, however, ordered the sale of 26 of the group’s stores in the state of São Paulo, which represent 3.3% of turnover for the last 12 months.
“We expected the superintendent’s decision to stand, but we respected the court’s decision. It was a remedy that I would say was acceptable,” Zimerman told Leaf this Wednesday (10). The businessman reiterated that the brands should remain separate and that the merger would be finalized this year.
Also this Wednesday, the IBGE (Brazilian Institute of Geography and Statistics) revealed data showing an accelerated decline in the number of births in Brazil. Brazilians have fewer and fewer children and more and more pets.
Despite significant revenues, the sector is very fragmented: of the 78 billion reais in revenue expected for the market in 2025, 48% is in the hands of small and medium-sized pet stores.
Petz and Cobasi are the main representatives of the megastore segment, which represents just under 10% of sales. For BTG bank analysts, “the new group will have the best positioning compared to physical competitors and digital pet care platforms, which are increasingly relevant”.
Announced in April 2024, the merger between Petz and Cobasi was approved without restrictions by the General Superintendence of Cade on June 2 of this year. However, the municipality admitted its rival Petlove as a third party interested in the process, which began to be analyzed by the agency court.
According to the rival, teachers will face price increases, since the new group will have a “monopoly position in hundreds of markets in Brazil”.
Zimerman, however, refuted these accusations. “The combination aims to reduce costs, reduce prices and benefit the consumer,” he said.
For Petlove, the sale of the stores decided by Cade “is not enough to create an effective rival capable of balancing the competitive game”, but the company has already expressed its interest in acquiring competitors’ points of sale.
“Petlove appears to be the natural candidate to acquire the assets, not only due to its size, but also due to its market positioning and capacity accumulated over decades of online operations,” Petlove states in a petition to Cade.
With 19 points of sale in four states (São Paulo, Rio de Janeiro, Rio Grande do Sul and Santa Catarina), the company was born online and has expanded to physical sales.
According to figures from Abempet, online sales have increased in recent years, including those from competitors such as Petlove, as well as sales of pet products in food retail. Agrostores lost space between 2023 and 2025.
Petz shares closed the day with an increase of 4.32%, listed at R$4.35. The report signed by analysts Luiz Guanais, Yan Cesquim and Pedro Lima, of BTG, states that the operation resulting from the merger, with an estimated revenue base of 7.2 billion reais, “aims to create a more rational competitive environment in a market still marked by fragmentation and uneven regional penetration.”
Analysts, however, highlight the ability of the two networks to capture short-term synergies after the merger, since the operations must remain under different brands – like the RD Saúde Group, which inspired the operation, keeping Droga Raia and Drogasil independent. “(…) In a macroeconomic environment that remains difficult, we maintain a ‘neutral’ position while awaiting clearer evidence of our ability to execute and capture synergies.”
During the first nine months of 2025, Cobasi recorded gross revenue of 2.6 billion reais. The company, founded in 1985 in São Paulo by the Nassar family, has 251 stores in 19 states and the Federal District. Around 40% of its sales are digital and 0.7% come from services.
Petz, established in 2002 in the capital São Paulo under the name Pet Center Marginal, is present in 23 states and the Federal District, with 264 stores. From January to September this year, it earned 3.2 billion reais, with digital sales accounting for 42.5% of the total and services 3%.
Zimerman is expected to take the helm of the board of directors of the new company, while Paulo Nassar, president of Cobasi, will be the CEO of the new group.
The founder of Petz says he tried to become a Cobasi franchisee before starting his own business. “Since I didn’t understand anything about the industry, I tried to talk to the owners of Cobasi, because I preferred to be their franchisee. But I didn’t even get any help, the store manager told me they weren’t interested in the model. So I went and learned on my own.”
On the other hand, Cobasi, in turn, does not have shares on the stock market, but was a pioneer in the concept of megastores focused on products and services aimed at pet care.
PETZ + COBASI RADIOGRAPHY
Foundation: 2025
Thirsty: Sao Paulo
Employees: 14 thousand
Stores: 515
Main brands: Petz, Cobasi, Seres, Adote Petz, Cansei de Ser Gato, Cão Cidadão, Zee.Dog, Zoo Now, Petix, Super Secão, Atacado Pet, Mundo Pet, Pet Anjo
Main competitors: Petlove, Petland, Mercado Livre, Amazon, Shopee
Gross income 2024: 6.5 billion reais
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