French banking group BPCE has agreed to acquire US private equity fund Lone Star's 75% stake in Novo Banco, valuing the Portuguese bank at €6.4 billion. This deal marks a significant consolidation move within the European banking sector.
Novo Banco was established in 2014 following the collapse of Banco Espirito Santo (BES) and a subsequent state bailout. Lone Star acquired its stake in 2017 for €1 billion.
Nicolas Namias, CEO of BPCE, stated that the acquisition will allow the group to become a major retail banking player in Europe. The Portuguese state and a banking resolution fund hold the remaining 25% stake in Novo Banco.
Namias highlighted that the acquisition aligns with the European Central Bank's push for banking consolidation. The European banking sector is witnessing a resurgence in consolidation activity, with both domestic and cross-border deals gaining traction.
BPCE already has a small consumer credit operation in Portugal, and its subsidiary Natixis operates a technology center there. As of March, Novo Banco held €30 billion in deposits and €28.5 billion in net loans, representing a 9% market share in Portugal. The bank operates nearly 300 branches and employs over 4,200 people.
BPCE anticipates the deal to be finalized during the first half of 2026.