The Novo Banco is set to change ownership. The Lone Star has reached an agreement with the French banking group BPCE for the sale of the Portuguese bank at a valuation of 6.4 billion euros.
The transaction details have been highlighted in a document prepared, addressing five key questions about this deal.
1 – What is known about the deal?
According to a statement sent to the Portuguese Securities Market Commission (CMVM), Lone Star “signed a Memorandum of Understanding to sell its shareholder position to BPCE, for an amount equivalent to a valuation of approximately 6.4 billion euros by the end of 2025, for 100% of the share capital.”
In another statement released the same day, BPCE mentioned it is “in discussions with the Portuguese Government and the Banking Resolution Fund regarding the acquisition of their shares in Novo Banco (11.5% and 13.5%, respectively) under similar conditions.”
2 – When will the deal be completed?
The transaction is expected to conclude in the first half of 2026.
3 – How does Novo Banco view the change in ownership?
For Novo Banco, the decision by the majority shareholder to proceed with a direct sale to BPCE “represents a strategic opportunity, positioning Novo Banco to integrate one of the largest and most solid European financial groups.”
“By integrating Novo Banco into the Group, alongside Banque Populaire and Caisse d’Epargne, BPCE will enhance its role as a significant development partner for the Portuguese economy,” the bank added.
The announced transaction “concludes the transformation process” of Novo Banco, “making it one of the most profitable banks in Europe, with a medium-term target Return on Tangible Equity (RoTE) exceeding 20%,” the bank stated.
Quoted in the statement, Novo Banco’s CEO expressed that integration with BPCE gives the bank “the strength and size of one of the most solid financial groups in Europe, continuing to develop its own successful path.”
“This transaction reinforces 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 a joint ambition. This is a great moment for Novo Banco, and we move forward with renewed confidence and a clear purpose,” stated Mark Bourke.
4 – Who is Groupe BPCE?
The Groupe BPCE is the second-largest banking group in France and the fourth largest in the eurozone in terms of capital, employing 100,000 workers and serving 35 million clients worldwide.
5 – Will the deal affect employees?
The French group BPCE intends to “keep the administration of Novo Banco and guarantees it has no intention of laying off workers,” an official source confirmed to Lusa.
“No changes are planned for Novo Banco’s Board of Directors, and no rebranding is anticipated,” the source emphasized.
When asked whether it plans to reduce, maintain, or increase the current workforce, BPCE stated that it “is not planning cost synergies,” indicating that its aim is to “support the bank’s development.”
Furthermore, the group has no intention of listing Novo Banco on the stock market.
Regarding potential further acquisitions in Portugal, the bank stated that it has “only one objective, which is to successfully complete this very important acquisition.”
Context: BPCE’s Entry into Portugal and the Origin of Novo Banco
The acquisition of Novo Banco by BPCE marks the French group’s entry into retail banking in Portugal, where it already operates in consumer credit and investment banking through Banco Primus, Oney, and Natixis.
It’s noteworthy that Novo Banco was created in 2014 to retain part of Banco Espírito Santo’s (BES) banking activities during 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, causing various political and media controversies. With the early ending of this mechanism in late 2024, the sale of Novo Banco became possible, allowing it to already distribute dividends.
