“The European Commission has approved, under the EU Merger Regulation, the acquisition of exclusive control of Novo Banco, Portugal, by BPCE, France. This transaction primarily concerns the Portuguese banking and financial sectors,” said the European executive in a statement.
According to the entity, the “notified transaction does not raise competition issues, given the limited combined market position of the companies resulting from the proposed transaction,” a deal formalized in mid-2025 with an estimated valuation of about 6.4 billion euros, involving 100% of Novo Banco’s capital.
In June, BPCE (Banque Populaire et Caisse d’Epargne), the second-largest French banking group, signed a memorandum of understanding to purchase 75% of Novo Banco’s share capital from Lone Star Funds.
By October, the Ministry of Finance and the Resolution Fund had signed an agreement with the BPCE group and Nani Holdings, the majority shareholder of Novo Banco (and an entity owned by Lone Star Funds), for the sale of minority stakes held in the institution (specifically 11.5% by the Portuguese State and 13.5% by the Resolution Fund).
At that time, the Ministry of Finance emphasized that “this operation successfully concludes a long phase, initiated with the resolution of BES [Banco Espírito Santo] and the subsequent sale of Novo Banco to Lone Star, contributing to the safeguard of Portugal’s financial stability.”
“This operation also allows for a significant recovery of public funds used in the restructuring of Novo Banco. The sale of State and Resolution Fund shares in Novo Banco, along with the dividend distribution that occurred this year, allows the public sector to recover almost two billion euros of the funds injected into the institution,” the authority added.
The official conclusion of the transaction is expected in the first half of 2026, subject to regulatory approvals and fulfillment of contractual formalities.
Novo Banco emerged as a healthy financial institution following the resolution of BES’s bankruptcy.
[Updated at 12:45 PM]
