(Bloomberg) – A judge revoked a court decision that blocked the planned sale of Banco Master to BRB due to an alleged failure of financial institutions to meet the legal requirements for an acquisition.
The Federal District Judge, João Egmont Leôncio Lopes, decided that there is no “real urgency or risk of irreparable damage” justifying. Lopes added that the transaction depends on the prior approval of the regulatory bodies.
BRB confirmed the decision that allows the signing of a definitive agreement in a statement on Friday. The company reiterated that the transaction depends on compliance with regulatory steps and pending approval of the Central Bank of Brazil and the antitrust agency.
BRB, a small public sector bank whose full name is a Bank of Brasilia, closed one, a fast -growing local bank, but that faces difficulties. The Brazilian media estimated that the business value is around 2 billion reais (US $ 350 million).
The acquisition is being investigated by federal regulators and prosecutors in Brazil due to concerns about the rapid expansion of the bank and the potential risks to public banks.
