SAO PAULO, Jan 26 (Reuters) - Brazilian pet retailer Petz is set to acquire dog potty pads manufacturer Petix in a 70 million reais ($12.85 million) stock and cash deal, financial blog Brazil Journal reported on Wednesday.

Petz did not immediately reply to a Reuters request for comment. ($1 = 5.4470 reais) (Reporting by Gabriel Araujo, editing by Louise Heavens)