On 30 April 2020, BRZ GVT issued rules on specific M&A assessments.
- Circular 4.013 of 28 April 2020 on BRZ CB assessment of certain concentration acts.
- Amended cir 3.590 of 2012 re analysis of mergers in the National Financial System.
- Specific concentration acts involving, directly or indirectly, financial institutions that must be submitted to BRZ CB include business transfer, entering into contracts or creating corporate structures for cooperation in the financial sector.
- Acquisition of minority interest that results, in acquiring institution or its parent company, in direct or indirect participation of 5% or more of voting capital of acquired.
- Last acquisition that results, in acquiring institution or its parent company, in increase of direct or indirect equity interest greater than or equal to 5%, in cases where investor holds 5% or more of voting capital of the acquiree, etc.
Examination and Documentation
- Those acts, must be submitted to BRZ CB examination within period of 30 days.
- Counting from the first legal transaction entered into between the parties.
- Sets out documentation to submit, documents BRZ CB can request on its own motion.
- BRZ CB analysis will prioritize the prudential aspects involved in concentration acts indicating relevant and imminent risks to strength and stability of financial system.
- Circular entered into force on publication date.