Banco de Brasília (BRB), the state-controlled lender of Brazil's Federal District, announced on 28 March 2025 the acquisition of a 58 per cent stake in Banco Master for R$2 billion, equivalent to approximately USD 351 million. The transaction, which combines a 49 per cent voting interest with 100 per cent of Banco Master's preferred shares, gives BRB effective operational control of a private-sector institution that has grown rapidly in recent years through high-yield retail products.
The deal values Banco Master at R$3.45 billion, or roughly USD 605 million. The agreed scope excludes approximately R$23 billion in non-core assets held by Banco Master, comprising precatórios — court-ordered government debts — and holdings in investment funds.
BANCO MASTER'S BUSINESS
Banco Master had built a retail presence among customers attracted to its above-market rates on fixed-income products.
Banco Master's growth model had attracted regulatory and market scrutiny in the period before the announcement. The bank expanded by offering high rates on Certificados de Depósito Bancário guaranteed by the Fundo Garantidor de Créditos, Brazil's deposit insurance scheme.
The structure of the share acquisition — separating voting and preferred classes — gives BRB day-to-day control and strategic direction while the residual stake remains with existing Banco Master shareholders.
REGULATORY APPROVALS
The transaction is subject to approval by the Central Bank of Brazil, which supervises bank ownership changes, and by CADE, Brazil's antitrust authority. The central bank has up to 360 days to rule on the transaction, although BRB's chief executive said he expected approval sooner.
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