Cade closes investigation into the sale of Master's insurance company after pointing out signs of crime

On May 7, Cade - a federal body that evaluates concentration of companies, purchases, mergers and possible impediments to free competition - authorized the purchase of Kovr by PicPay, a digital bank from the J&F group, owned by brothers Joesley and Wesley Batista.

In the same act, the agency highlighted suspicions of crime and irregularities in negotiations involving Kovr between July and September 2025 - the liquidation of Master by the BC (Central Bank) took place in November of the same year.

Three of its minority partners acquired the insurance company, in an operation designed so that, in the end, PicPay acquired the insurance company.

Cade then pointed out evidence of the practice of "gun jumping" (when an acquisition is carried out before the federal agency's decision), financial triangulation and crimes against the national financial system.

To investigate the irregularities, a new process was opened. The establishment took place on the same day, May 7th.

This process was archived on the 28th, three months after the investigation was initiated, because there was no billing required by law for this type of analysis. Businesses must be analyzed in which at least one group involved in the acquisition has annual gross revenue equivalent to or greater than R$30 million.

In the case of the criminal sphere, Cade stated, in the act in May, that "indications of possible crimes against the national financial system will be brought to the attention of the competent authorities for their investigation". So far, this evidence has not been forwarded.

"Following the decision [of archiving in the administrative sphere], Cade's general superintendence is waiting for the deadline to be called by the administrative economic defense court [linked to Cade] to send the letters to the Central Bank and the MPF [Federal Public Ministry]", said the body. The deadline is 15 days, according to Cade.

In a note, PicPay stated that it received approval from Cade, BC and Susep (Private Insurance Superintendence) for the acquisition of Kovr, without any restrictions on the completion of the operation.

"The company is not aware of any investigation or investigation related to the matter and reinforces that the operation was conducted in accordance with applicable regulatory procedures," he said.

Vorcaro's defense did not respond to questions sent this Monday (3) by email and cell phone message.

Kovr was not the target of measures in the different phases of investigations by the PF (Federal Police), launched so far, into the businesses conducted by Vorcaro.

The company was accredited by public bodies, such as the Army, to offer insurance and pension services to employees. For these services, it received R$261.4 million from payroll deductions between 2014 and 2026, according to the federal government's Transparency Portal.

When Master was trying to arrange an acquisition by BRB (Banco de Brasília), the bank informed Cade that there would be a "corporate reorganization", with segregation of assets and liabilities of Vorcaro's institution. Kovr and subsidiaries would be segregated, according to information provided to the federal authority.

The process of acquiring the insurance company by minority partners began in July 2025. There was no notification to Cade because it was a "mere corporate reorganization internal to the Master group", as informed to the body by Kovr, which would not imply an act of economic concentration.

The operation was completed in September. "Immediately after the closing of the purchase transaction by the individuals purchasing the part that belonged to the Master group, a contract was signed between these individuals and PicPay/JBS, for the purchase by PicPay of the entire share capital of Kovr", states a technical opinion from Cade.

The acquisition by PicPay was announced in February this year. The deal was approved without restrictions in May.

Cade's technical area did not see infractions such as "gun jumping" in an opinion drawn up on the 28th, the same day that the agency's interim general superintendent, Felipe Roquete, agreed with the opinion and ordered it to be archived.

The agency did not comment on the filing.

Five days before the process was filed with Cade, PicPay announced in a statement to the market that it had received final regulatory approval from the BC for the purchase of Kovr.