“O Novo Banco, S.A. (“novobanco” ou o “Banco”) informs that its majority shareholder, Nani Holdings S.à r.l. (an entity owned by Lone Star Funds), has signed a Memorandum of Understanding for the sale of its shareholder position to BPCE, for an amount equivalent to a valuation of approximately 6.4 billion euros at the end of 2025, for 100% of the capital,” reads a statement sent to the Comissão do Mercado de Valores Mobiliários (CMVM).
The transaction’s completion is expected in the first half of 2026.
In a statement released today, BPCE also states that it is “in talks with the Portuguese Government and the Banking Resolution Fund regarding the acquisition of their shares in Novo Banco (11.5% and 13.5%, respectively) on identical terms.”
The French group emphasizes that the purchase of Novo Banco, “representing an amount of approximately 6.4 billion euros (for 100% of the capital) and a multiple of about 9x annual earnings, is the largest transnational acquisition in the eurozone in more than 10 years.”
“Upon conclusion of the transaction, Portugal will become the Group’s second-largest national retail market,” it highlights.
Currently employing over 3,000 people in Portugal, BPCE notes that the opening in 2017 of a multi-company competence center in Porto “has 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 integrate into one of Europe’s largest and most stable financial groups.”
“By integrating Novo Banco into the Group, notably alongside the banking networks Banque Populaire and Caisse d’Epargne, BPCE will strengthen its role as an important partner in the development 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) target above 20%.”
Quoted in the statement, Novo Banco’s Chief Executive Officer (CEO) states that with the integration into BPCE, the bank “gains the strength and scale of one of Europe’s most solid financial groups, continuing to develop its own path of success.”
“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 shared ambition. This is a great moment for novobanco, and we move forward with renewed confidence and a clear purpose,” said Mark Bourke.
Meanwhile, Groupe BPCE CEO Nicolas Namias notes that Novo Banco, “with market shares of 9% in the individual customer segment and 14% in the corporate segment, […] presents strong fundamentals, high growth potential, and a high level of profitability.”
“As a leading entity in proximity banking in France, through the Banque Populaire and Caisse d’Epargne networks, the Group will also become a relevant operator in commercial banking in Europe with the acquisition of novobanco, actively participating in financing the Portuguese economy,” he says.
He adds 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 presents itself as the second-largest banking group in France and the fourth largest in the eurozone in terms of capital, with 100,000 employees and 35 million customers worldwide.
Novo Banco was created in 2014 to assume 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, sparking several political and media controversies. With the early termination of this mechanism at the end of 2024, the sale of Novo Banco has become possible, and it can already pay dividends.
Lone Star announced this year the sale of part of the bank on the stock market and a dividend distribution plan to make the institution attractive to investors.
[News updated at 09:12]
