Cobasi Comércio de Produtos Básicos e Industrializados S.A. signed a non binding memorandum of understandings to acquire Pet Center Comércio e Participações S.A. (BOVESPA : PETZ3) from Warburg Pincus LLC, Sergio Zimerman and others in a merger of equals transaction on April 18, 2024. Petz and Cobasi have reached an agreement to merge operations in a cash and share swap deal that would create the country's largest player in the sector. The deal would value Petz at BRL 7.10 ($1.35) per share, more than double its closing price of BRL 3.50 on Thursday, and would also include Cobasi paying BRL 450 million in cash to Petz shareholders. Under the agreement, the combined company, which would bring together the two largest pet retailers in Brazil, would be owned 50% by Petz shareholders and 50% by Cobasi shareholders. Cobasi founder Paulo Nassar will be appointed as Chief Executive of the combined group, while Petz Chief Executive Officer Sergio Zimerman will be nominated as Chairman. The deal depends on a definitive agreement and approval from Brazil's antitrust regulator. The companies have 60 days of exclusivity in negotiations, extendable for another 30, and will now move on to due diligence.

Itaú Corretora de Valores S.A. acted as financial advisor and Lefosse Advogados acted as legal advisor to Pet Center Comércio e Participações S.A. Banco Morgan Stanley S.A. acted as financial advisor and Pinheiro Neto Advogados acted as legal advisor to Cobasi Comércio de Produtos Básicos e Industrializados.