Quadrado Withdraws from Digimais Bank Acquisition Amid Market Uncertainty

São Paulo, Brazil (AP) — Maurício Quadrado has officially withdrawn from his planned acquisition of Digimais, a bank previously known as Banco Renner, which is controlled by Edir Macedo, founder of the Universal Church of the Kingdom of God and owner of TV Record. The decision was reached by mutual agreement and communicated in a letter dated March 25, following growing uncertainties in the financial market.

Quadrado, who initially announced the acquisition in January, cited the deteriorating conditions in the economic landscape, characterized by rising interest rates and inflation, as the primary reason for his withdrawal. The planned transaction would have involved a significant capital infusion of R$800 million from Quadrado, nearly doubling Digimais’ reported net worth of R$698.8 million as of its last balance sheet.

An official communication from the current management of Digimais stated, “The decision for non-continuity of the shareholder control transfer process was taken in agreement with Quadrado’s group.” The move leaves Digimais in a precarious financial position, facing liabilities amounting to R$8 billion while having approximately 100,000 clients with R$9.1 billion in assets primarily engaged in payroll loans and vehicle financing.

Since its rebranding in 2020 after being acquired by Macedo, Digimais has sought to strengthen its operational and market strategies, claiming that selling control could free up resources for more core business activities. However, the current volatility may test the durability of such strategies.

Quadrado’s recent corporate maneuvers included the establishment of BlueBank, a new financial institution comprising a securities brokerage, asset management, and a bank named Letsbank, pending approval by regulatory authorities. Previously, Quadrado held a significant stake in Banco Master, where he was instrumental in divestitures and financial transactions.

The announcement of his exit from the Digimais acquisition raises questions about the future of both Quadrado’s ventures and the bank itself. This acquisition would have expanded his footprint in the retail banking sector, which Quadrado had described as a promising growth opportunity.

In a series of communications with stakeholders, Quadrado outlined his vision of how control of Digimais would enhance operational limits and facilitate credit origins tailored to retail and individual consumer segments. Nonetheless, the favorable market conditions previously anticipated have since shifted, compelling him to reassess the risk involved.

Despite the withdrawal, the infrastructure surrounding BlueBank remains intact, continuing collaborations with asset management firms and advisory bodies such as Trustee and CM Capital. Meanwhile, regulatory bodies have not disclosed further actions regarding Quadrado’s investment plans as developments unfold.