By Luciana Magalhaes

RIO DE JANEIRO (Reuters) -Brazilian state-run bank BRB has nearly completed its due diligence to acquire local lender Banco Master, with the final deal price expected to be confirmed at around 2 billion reais ($360 million), BRB CEO Paulo Henrique Costa said on Tuesday.

"We are still in the due diligence process, but this is the last stage," Costa told reporters at the Web Summit Rio. "The value being considered is close to 2 billion reais, which is an amount that makes sense."

In late March, BRB announced the acquisition, which is subject to regulatory approval. The initial estimate for the deal was around 2 billion reais, with the possibility of a lower price depending on the due diligence outcome.

Under the agreement, BRB will purchase 49% of Banco Master’s common shares and 100% of its preferred shares, totaling 58% of the bank’s capital.

Costa said on Tuesday the contract required Banco Master’s shareholders to inject 2 billion reais into their bank.

Master, controlled by businessman Daniel Vorcaro, has grown rapidly in recent years, driven by a funding model that relies on issuing high-yield debt securities distributed through investment platforms.

Master’s funding strategy has come under greater scrutiny amid concerns about the future of its assets not acquired by BRB.