The Central Bank (BC) decided to reject the purchase of Banco Master by Bank of Brasilia (BRB)that It has been under review by the institution since March and It was the last regulatory stage necessary for the operation to be below.
The decision on the veto was informed on Wednesday night (3), in a relevant statement of BRB to investors. The BC has not yet officially commented.
“BRB – Bank of Brasilia SA (” BRB “; B3: BSLI3 and BSLi4) communicates to its shareholders and the general market that was informed by the Central Bank (” BACEN “) on the rejection of the request filed on March 28, 2025, referring to the acquisition of 49% of the ordinary shares and 100% of Banco Master SA (” Banco “). access to the full decision, with the objective of evaluating its grounds and examining the appropriate alternatives, “BRB said in a statement.
“BRB reiterates its position that the transaction represents a strategic opportunity with value generation potential for BRB, its clients, the Federal District and the National Financial System and will maintain its shareholders and the market informed about any relevant consequences, pursuant to applicable legislation and regulation,” he added.
Just over 10 days ago, the Governor of the Federal District, Ibaneis Rocha, had sanctioned a district law, approved by the DF Legislative Chamber (CLDF), by judicial requirement, to authorize BRB to acquire 49% of the common shares and 100% of the preferential shares of Banco Master SA. The objective would be to expand the presence of BRB in the market and strengthen its performance in the financial sector.
Since the announcement of the business six months ago, BRB shares have valued about 23% on the stock exchange (B3).
Controversial business
Also since the BRB announced its intention to buy Banco Master, for the amount of R $ 2 billion, the deal was considered controversial.
This is because the Master has a policy considered aggressive by the market to raise funds, offering income of up to 140% of the Bank Deposit Certificate (CDI) to those who buy papers from the financial institution, far higher than the average rates for small banks, around 110% to 120% of the CDI.
Without publishing the December balance last year, the Master faces the distrust of the financial market. Recently, the financial institution has tried a dollar title issuance, but could not raise funds. Bank operations with precatory, debt securities of governments with definitive court sentence also increased doubts about the financial situation of the institution.
Recently, BTG Pactual offered only $ 1 to take control of the Master and take over the passive of the financial institution. Debts would be covered with funds from the Credit Guarantee Fund (FGC), a fund that covers investments of up to R $ 250,000 per individual or legal entity in each financial institution.
However, the lack of agreement between banks that contribute funds in the FGC prevented the business from going ahead.
