The signing ceremony for the sale agreements of Novo Banco is set for Wednesday, October 29, announced the Ministry of Finance on Tuesday.
The event will take place in the Salão Nobre of the Ministry of Finance in Lisbon, where statements from Finance Minister Joaquim Miranda Sarmento are expected.
“The Minister of State and Finance will speak at the ceremony for the signing of the State of Portugal and the Resolution Fund’s agreements adhering to the Novo Banco sale contract,” according to a press release sent to newsrooms.
**Novo Banco sold to BPCE group for 6.4 billion euros**
Lone Star has reached an agreement with the French banking group BPCE for the sale of Novo Banco, valuing 100% of the share capital at 6.4 billion euros.
Novo Banco, S.A. (“novobanco” or the “Bank”) informs that its majority shareholder, Nani Holdings S.à r.l. (an entity owned by Lone Star Funds), signed a Memorandum of Understanding to sell its shareholding to BPCE, valuing approximately 6.4 billion euros by the end of 2025 for 100% of the share capital,” reads a statement sent to the Securities Market Commission (CMVM).
The transaction is expected to conclude in the first half of 2026.
BPCE announced today that it is “in talks with the Portuguese Government and the Banking Resolution Fund to acquire their shares in novobanco (11.5% and 13.5% respectively), under similar conditions.”
The French group highlights that the acquisition of Novo Banco, “representing approximately 6.4 billion euros (for 100% of capital) and a multiple of about 9x annual earnings, is the largest transnational acquisition in the eurozone in over a decade.”
“After the transaction’s conclusion, Portugal will become the group’s second-largest national retail market,” it emphasizes.
Currently employing over 3,000 people in Portugal, BPCE notes that the opening of a multi-company competence center in Porto in 2017 “strengthened local ties.”
For Novo Banco, the majority shareholder’s decision to proceed with a direct sale to BPCE “represents a strategic opportunity, positioning novobanco to join one of the largest and strongest European financial groups.”
“By integrating novobanco into the group, along with the Banque Populaire and Caisse d’Epargne banking networks, BPCE will reinforce its role as a key development partner of the Portuguese economy.”
Novo Banco states that the announced transaction “concludes the transformation process” of the banking institution, “making it one of the most profitable banks in Europe, with a medium-term Return on Tangible Equity (RoTE) goal exceeding 20%.”
The Novo Banco CEO, quoted in the statement, claims that by integrating with BPCE, the bank “gains the strength and scale of one of Europe’s most solid financial groups, continuing to pursue its own successful path.”
“This transaction strengthens our mission to support Portuguese families and businesses, deepens our commitment to the national economy, and ensures a long-term future based on solidity, trust, and joint ambition. This is a major moment for novobanco, and we move forward with renewed confidence and a clear purpose,” stated Mark Bourke.
The Groupe BPCE CEO, Nicolas Namias, notes that Novo Banco, “with market shares of 9% in the retail customer segment and 14% in the business segment, […] presents solid fundamentals, strong growth potential, and a high level of profitability.”
“As a reference entity in proximity banking in France through the Banque Populaire and Caisse d’Epargne networks, the Group will also become a significant player in European commercial banking with the acquisition of novobanco, actively participating in financing the Portuguese economy,” he says.
He added that “BPCE’s leaders and employees are particularly excited about the prospect of welcoming novobanco, its management team, and its 4,200 employees into the Group.”
Groupe BPCE is recognized as the second-largest banking group in France and the fourth-largest in the eurozone by capital, with 100,000 employees and 35 million clients worldwide.
Novo Banco was created in 2014 to absorb part of Banco Espírito Santo’s (BES) banking activities following its resolution.
Since 2017, when Novo Banco was sold to Lone Star, the Banking Resolution Fund has injected 3.405 billion euros into the bank, creating various political and media controversies. The early termination of this mechanism at the end of 2024 allowed for the sale of Novo Banco and the payment of dividends.
Lone Star announced plans to sell part of the bank on the stock market this year, along with a dividend distribution plan to make the institution appealing to investors.
