BPCE Acquires Majority Stake in Portugal's Fourth-Largest Bank, Novobanco

Groupe BPCE, the second-largest bank in France, has signed a Memorandum of Understanding to acquire a 75% equity interest in novobanco, Portugal's fourth-largest bank, for a cash amount of approximately €6.4bn. This is the biggest cross-border acquisition in the euro zone in over 10 years and marks a new stage in BPCE's "Vision 2030" strategic plan to develop and diversify the bank in France, Europe, and globally.

Groupe BPCE, the second-largest bank in France, has signed a Memorandum of Understanding to acquire a 75% equity interest in Novobanco, Portugal's fourth-largest bank, for a cash amount of approximately €6.4bn. This transaction, valued at around 9 times Novobanco's annual results, is the biggest cross-border acquisition in the euro zone in over a decade [1].

The acquisition marks a significant milestone in BPCE's "Vision 2030" strategic plan, aiming to develop and diversify the bank in France, Europe, and globally. The deal is expected to close in the first half of 2026, subject to necessary consultations with employee representative bodies [2].

Under the stewardship of Lone Star Funds, Novobanco has transformed into one of the most profitable banks in Europe. With a return on tangible equity (RoTE) exceeding 20%, the bank has significantly de-risked its balance sheet and invested heavily in digital transformation and customer experience [3].

BPCE's acquisition of Novobanco underscores its confidence in the Portuguese banking sector and the country's economic future. With €73bn in equity and a CET1 ratio of 16.2%, BPCE brings the strength and stability of a major European cooperative banking group to Novobanco [2].

The acquisition reflects BPCE's commitment to fostering long-term growth and enhancing its presence in Portugal. BPCE aims to build on its foundation to further support the growth of Novobanco, leveraging its extensive customer base and diverse expertise to offer a wider range of value-added services [2].

Donald Quintin, Chief Executive Officer of Lone Star, commented, "We are proud to have supported Novobanco’s transformation to become one of Europe’s leading and most profitable financial institutions. The bank has undergone a comprehensive transformation over the last eight years, becoming a trusted partner for Portuguese households and businesses across the country. BPCE shares our ambition for Novobanco and is well positioned to take the bank forward as it continues to deliver for customers, SMEs and the Portuguese economy as a whole" [2].

Nicolas Namias, Chief Executive Officer of BPCE, stated, "Novobanco possesses excellent fundamentals, strong growth potential and an already high level of profitability. For its part, BPCE is a major banking player in France notably thanks to the Banque Populaire and Caisse d’Epargne banking networks. With the acquisition of Novobanco, BPCE would become a retail banking player in Europe and would actively participate in financing the Portuguese economy. The projected transaction marks a key stage in the execution of its “Vision 2030” strategic plan, announced close to a year ago" [2].

Kambiz Nourbakhsh, Senior Managing Director at Lone Star Funds, added, "This agreement marks a defining moment in the transformation of Novobanco and is a testament to the extraordinary efforts of its leadership and employees over the last eight years. In BPCE, we have found a new owner for Novobanco that has the experience and vision to build on its strong foundations and support the bank as it delivers on its long-term growth strategy" [2].

References:
[1] https://www.globenewswire.com/news-release/2025/06/13/3098830/0/fr/BPCE-BPCE-signe-un-Memorandum-of-Understanding-en-vue-d-acqu%C3%A9rir-novobanco-quatri%C3%A8me-banque-du-Portugal.html
[2] https://www.businesswire.com/news/home/20250611314909/en/Lone-Star-Announces-Sale-of-novobanco-to-BPCE
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3SE0FE:0-fnac-darty-climbs-on-coherent-strategic-plan/