The companies must not deny the debate over the consequences of their business combination, said director of the Consumer Protection and Defense Department at the Senacon.
The absence of Petz and Cobasi, Brazil's two pet care industry leaders, from a public hearing in the Chamber of Deputies on August 12 to discuss the competitive impacts of their merger was met with disapproval by participants representing the executive and legislative branches of federal government.
Vitor Hugo do Amaral Ferreira, director of the Consumer Protection and Defense Department at the National Consumer Secretariat (Senacon), said the companies must not deny the debate over the consequences of their business combination.
Ferreira referenced the Brazilian Consumer Defense Code, pointing out that the law must take into account changes in the consumer market. Senacon is an agency within the Ministry of Justice and Public Security.
“When we talk about the merger of the two largest companies and what it represents for the market in the sector, it is important that we have clarity, information, and concrete studies on this impact,”
he said.
The Senacon official added that the pet care sector in particular has faced significant transformation in recent years. Therefore, the merger between Petz and Cobasi should be examined closely.
Petz and Cobasi are the top two companies in the sector and plan to create the largest conglomerate in their market, valued at more than 8 billion reais (approx. $1.5 billion).
The Administrative Council for Economic Defense, or CADE, approved the deal in early June. However, third-party Petlove appealed the decision, requiring further scrutiny, which was accepted. The case will be analyzed by the economic watchdog’s Tribunal.
Source: MLex
