Lone Star exits Novo Banco in $7.4bn sale to France’s BPCE

Lone Star has agreed to sell its 75% stake in Novo Banco to French banking group BPCE in a landmark deal that values Portugal’s fourth-largest lender at €6.4bn ($7.4bn). 

The transaction marks a major exit for the US private equity firm, which acquired the stake in 2017 for €1bn as part of a post-crisis restructuring effort.

The sale follows a broader trend of consolidation within the European banking sector. Nicolas Namias, CEO of BPCE, said the acquisition aligns with the European Central Bank’s push for greater integration and will allow BPCE to expand its footprint as a retail banking player across Europe.

The Portuguese state and its banking resolution fund, which hold the remaining 25% of Novo Banco, are expected to sell their stake on the same terms, under a tag-along agreement.

Novo Banco was created in 2014 from the failed Banco Espírito Santo. Under Lone Star’s ownership, the lender has undergone extensive restructuring and returned to profitability, reporting €30bn in deposits and €28.5bn in net loans as of March 2025, representing a 9% share of the Portuguese market. The bank operates close to 300 branches and employs more than 4,200 people.

BPCE, already present in Portugal through its consumer credit operations and Natixis technology centre, plans to complete the transaction in the first half of 2026.

Source: Reuters

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