The Conselho Administrativo de Defesa Econômica (CADE) in Brazil approved the acquisition of Banco Master by BRB, Brasília's state-owned bank. The deal, announced in March, involves BRB purchasing 49% of Banco Master's common shares and 100% of its preferred shares, resulting in a 58.04% stake.
CADE's approval, without restrictions, is based on a low concentration index (below 10%) in all overlapping activities, including deposits, savings, loans, cards, and digital payments. CADE found that the merger poses no threat to competition. The combined market share is below 20% in horizontally overlapping markets and below 30% in vertically integrated markets, thresholds below which dominant market positions are not presumed.
The approval is contingent on the Central Bank's approval, which regulates the banking sector.
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