European Commission gives the ‘green light’ to the sale of Novo Banco to the French BPCE

The European Commission today approved the sale of Novo Banco to BPCE, the second largest French banking group, which will become the sole shareholder of this fourth largest Portuguese bank, considering that there are no competition concerns.
“The European Commission has approved, under the EU Merger Regulation, the acquisition of sole control of Novo Banco, of Portugal, by BPCE, of France. The transaction mainly concerns the Portuguese banking and financial sectors,” the European executive announces in a statement.
According to the institution, the “notified transaction does not raise competition concerns, given the limited combined market position of the companies resulting from the proposed transaction,” in a deal formalized in mid-2025 with a valuation of around 6.4 billion euros and referring to 100% of Novo Banco’s capital.
Last June, BPCE (Banque Populaire et Caisse d’Epargne), the second largest French banking group, signed a memorandum of understanding to purchase 75% of the share capital of Novo Banco from Lone Star Funds.
Then in October, the Ministry of Finance and the Resolution Fund signed an agreement with the BPCE group and Nani Holdings, the majority shareholder of Novo Banco (and an entity owned by Lone Star Funds), for the sale of the minority stakes held in the institution (more specifically 11.5% by the Portuguese State and 13.5% by the Resolution Fund).
At the time, the Ministry of Finance stressed that “this operation makes it possible to successfully conclude a long stage, initiated with the resolution of BES [Banco Espírito Santo] and the subsequent disposal of Novo Banco to Lone Star, contributing to safeguarding Portugal’s financial stability.”
“This operation also allows a significant recovery of public funds used in the restructuring of Novo Banco. The sale of the State’s and the Resolution Fund’s stakes in Novo Banco, together with the distribution of dividends that took place this year, allows the public sector to recover almost two billion euros of the funds injected into the institution,” the ministry added.
The official conclusion of the transaction is scheduled for the first half of 2026, subject to regulatory approvals and the fulfillment of contractual formalities.
Novo Banco emerges as a healthy financial institution resulting from the resolution of the bankruptcy of BES.