Petz denies merger with Cobasi, but says he evaluates chances – 08/28/2023 – Market

Petz said this Monday (28th) that it is continually evaluating potential opportunities for acquisitions and business combinations, but that there is no agreement with rival Cobasi.

The pet shop chain said in a material fact that “it continually evaluates and explores potential opportunities for acquisitions and business combinations… Cobasi”.

The statement came after a report by Valor Econômico newspaper stated, citing sources, that Petz and Cobasi had once again engaged investment banks to negotiate a possible merger. Still according to the report, the companies tried to get closer in the past.

On the São Paulo stock exchange, Petz shares rose more than 7%, to R$ 5.80. Around 1:25 pm, they advanced 2.22%, at R$ 5.52, still among the best performers on the Ibovespa, which was up 0.47%.

In the year, however, the shares have accumulated a drop of more than 11%, having renewed historic lows on the last 17th, when it reached R$ 4.98 at the worst moment and closed at R$ 5.11.

For the team at Genial Investimentos, this eventual business combination is expected by the market. “And it would result in the creation of a giant in the pet shop sector in Brazil, which still has great growth potential”, he added in a report to clients.

In the first half, Petz posted adjusted net income of R$43.7 million, down 18.8% year-on-year, while the group’s total gross revenue increased 20.1% to R$1.86 billion. At the end of June, the company had 231 stores. Cobasi reports having more than 200 units.