Project to acquire novobanco in Portugal
Groupe BPCE has signed on the 13th of june 2025 a Memorandum of Understanding for the acquisition of a 75% equity interest in novobanco, Portugal’s fourth-largest bank, from the private equity firm Lone Star Funds.
The transaction, representing a cash amount of approximately €6.4bn(1) (for 100% of the shares), is the biggest cross-border acquisition in the euro zone for more than 10 years. Following the creation of BPCE Equipment Solutions at the start of the year, this project marks a new key stage in the execution of the VISION 2030 strategic plan, geared to developing and diversifying BPCE in France, Europe and the wider world. On completion of the transaction, Portugal would become the Group’s second-largest domestic retail market.
Novobanco, Portugal’s fourth-largest bank(2) with market shares of 9% with individual customers and 14% with company clients, has 1.7 million individual customers and manages a €17bn corporate loan book. With its 4,200 employees, novobanco operates through some 290 branches and an extensive network of external partners, while also offering a rich customer experience through its digital channels. In recent years, novobanco has become one of the most profitable banks in Europe, posting a cost-income ratio under 35% and a return on tangible equity (RoTE) exceeding 20%(3).
The acquisition of novobanco would help diversify BPCE in two respects: geographically, via access to a dynamic economy, and in balance sheet terms, by increasing the proportion of variable-rate loans on its balance sheet, thus improving its revenue profile. The transaction marks a new key stage in the Group’s European-scale growth, following the creation of BPCE Equipment Solutions in February 2025 and the ongoing project to create the leading European asset manager in partnership with Generali. On completion of the transaction, Groupe BPCE’s CET1 ratio would remain above 15%.
BPCE will proceed with the necessary consultations with employee representative bodies in order to sign the acquisition contract. The project is projected for completion in the first half of 2026.
(1) Estimated consideration as of December 2025
(2) Ranking in terms of balance-sheet size at end-2024
(3) In first-quarter 2025