Banco Master, one of the country's most traditional financial institutions, has become the center of a series of decisive movements in the Brazilian market in 2025. Involving billion-dollar acquisitions, regulatory investigations and negotiations with sector giants, the case calls into question not only the future of the institution, but also confidence in the banking system and the assets issued by it.
The acquisition by BRB
On March 28, 2025, Banco de Brasília (BRB) announced the purchase of 58.6% of Banco Master's share capital, for approximately R$ 2 billion. The operation also includes control of the Will Bank, a digital bank previously acquired by Master in February 2024.
The strategy aims to expand BRB's digital presence and its customer base. The conclusion of the transaction, however, depends on approval from both the Central Bank (BC) how much of the Administrative Council for Economic Defense (Cade).
Regulatory uncertainties
Market sources indicate that the Central Bank may not fully approve the operation. There are doubts about the corporate structure of the business and possible regulatory weaknesses involved in the transaction. This uncertainty has worried investors, especially holders of bonds issued by Master and Will Bank.
Investigation by the Public Prosecutor's Office
THE Public Prosecutor's Office of the Federal District also opened an investigation into the purchase. The suspicion is that, since it is a public bank, BRB would have conducted the operation without in-depth technical feasibility studies and without due transparency about the risks.
Master's partners in the sights of CVM
At the same time, the partners of Banco Master are being investigated by Securities and Exchange Commission (CVM), under accusation of fraudulent practices in the financial market. A proposed agreement has already been rejected by the authority, and the process is still ongoing — which could negatively influence the perception of the acquisition.
Sale of assets to BTG Pactual
As part of its restructuring process, Banco Master is negotiating with the BTG Pactual the sale of remaining assets — such as writs of execution and participation in private equity funds — with an estimated value between R$ 15 billion and R$ 23 billion.
If completed, this sale could improve the group's liquidity and alleviate financial pressures in the short term.
What about investors?
The big question is about the CDBs issued by Banco Master and Will Bank. BRB has committed to honor the securities issued by the acquired companies. However, assets issued by subsidiaries outside the agreement may not be covered — creating uncertainty among retail and institutional investors.
Conclusion
The Banco Master case shows how strategic decisions involving bank mergers and acquisitions can trigger regulatory, political and reputational consequences. The market is closely monitoring the development of the process, which involves public entities, financial institutions and thousands of investors.
More than a billion-dollar transaction, this is a emblematic case of the new phase of the Brazilian banking system — where politics, capital and trust are at stake.
References:
S. Paulo Newspaper: Public Prosecutor's Office investigates the purchase of Master by BRB
Reuters: BRB acquires Banco Master and Will Bank
Reuters: Banco Master negotiates assets with BTG Pactual
Value Invest: BRB buys Banco Master, says columnist
I Want to Invest: BC may block purchase of Banco Master
Your Money: What happens to Master Bank and Will Bank CDBs?
West Magazine: Banco Master partners investigated for fraud
English 
Portuguese