Judge declares that there is no legal justification to bar business; The acquisition still depends on the approval of the Central Bank
The (Court of Justice of the Federal District and Territories) revoked on Friday (9.MAI.2025) the (URGENT) that barred the signing of Banco Master’s purchase contract by BRB (Bank of Brasilia). The transaction still depends on the endorsement of the Central Bank and Cade (Administrative Council for Economic Defense).
The lawsuit was filed by MPDFT (Public Prosecution Service of the Federal District and Territories), which argued that BRB has failed to comply with legal obligations by ceasing to hold specific assembly and obtain legislative authorization for the business. Already the bank stated that these determinations would not be mandatory in this case because the operation does not characterize the acquisition of the total control of the institution.
In the decision of this Friday (9.MAI), Judge João Egmont understood that there are no plausible justifications to maintain the decision that prevented the business. It also claimed that a delay in the acquisition process may interfere with the strategic operations of companies and credibility before the financial market. Read A (PDF – 444 KB).
“There is no real urgency or risk of irreparable damage to justify the injunction granted by the aggravated decision, whose maintenance interferes with the strategic operation unnecessary business, even before the technical analysis of the regulatory agencies ”says an excerpt from the document.
Egmont also stated that the operation has not yet been completed and that there is no evidence that the acquisition violates legal rules or constitutional principles.
Understand
BRB’s board of directors approved the purchase of the Master on March 28. The Bank of Brasilia acquired 49% of Banco Master’s common shares, 100% of preferred shares and 58% of the total capital of the financial institution.
The acquisition price is 75% of the consolidated equity of Banco Master, calculated according to the audited financial statements, adjusted by any assets or recognition of balance sheet.
Payment will be made as follows:
- 50% of cash value on the operation date of the operation;
- 25% to 50% to be determined until the Bank’s Diligence is completed by BRB and deposited in an account escrow for the purpose of guaranteeing compensation obligations;
- An eventual remaining amount will be paid on the 2nd anniversary of the operation’s closing date.
BRB has been growing in 6 years. It had 650 thousand customers. Currently, it has 8 million. It started to offer services beyond the Federal District, which has 2.8 million inhabitants. Master has 10 million customers.
The bank in 23rd position of Brazilian banks. By combining the Master’s assets, it would reach 16th position, with a total assets of about R $ 110 billion.
