In a statement sent to the Portuguese Securities Market Commission (CMVM), Novo Banco, S.A announces 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 shareholding to BPCE for an amount equivalent to a valuation of approximately €6.4 billion at the end of 2025 for 100% of the share capital.”

The same statement expresses that the decision of the direct sale to BCPE is “a strategic opportunity, positioning Novo Banco to join one of the largest and most solid European financial groups.” The transaction is expected to be completed by the first half of 2026.

Lone Star also believes that the integration of Novo Banco into the French group that also includes “Banque Populaire and Caisse d'Epargne banking networks” will help the bank to “strengthen its role as an important partner in the development of the Portuguese economy.”

Novo Banco also states that the announced transactions “completes the transformation process” of the institution that can turn it into “one of the most profitable banks in Europe, with a medium-term return on tangible equity (RoTE) target of over 20%.”

Mark Bourke, CEO of Novo Banco, assures that the integration into BPCE will make the bank to gain “the strength and size of one of the most solid financial groups in Europe, continuing to develop its own path to 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 Novo Banco and we move forward with renewed confidence and a clear purpose,” he added.

Nicolas Namias, CEO of the Groupe BPCE said that Novo Banco “with market shares of 9% in the retail segment and 14% in the corporate segment, [...] has solid fundamentals, strong growth potential and a high level of profitability.”

“As a leading player in retail banking in France through the Banque Populaire and Caisse d'Epargne networks, the Group will also become a major player in commercial banking in Europe with the acquisition of novobanco, actively participating in the financing of the Portuguese economy,” he added.

Namias also guaranteed that the employees and administration team will keep working in a bank that he considers to be “one of the most rentable banks in Europe.”

Novo Banco was created in 2014 to take over part of Banco Espírito Santo’s (BES) banking activity, following the latter’s resolution. In 2017, it was sold to Lone Star, the Bank Resolution Fund has injected €3.405 billion into the bank, causing several political and media controversies. With the early end of this mechanism at the end of 2024, it has become possible to sell Novo Banco and for it to pay dividends.

The Governments reaction

According to the Minister of Finance, Joaquim Miranda Sarmento, quoted by ECO, the sale of Novo Banco will allow the State to “recover around two billion euros of the public funds given to the institution.”

The same minister underlined that BPCE is “one of the biggest European banks and a bank with a cooperative structure.”