France-based bank BPCE has reached an agreement to acquire Portugal’s Novo Banco in a USD 7.39 billion transaction, with Lone Star, the US private equity firm, holding 75% of the deal.
In a statement made on June 13, 2025, by BPCE and Lone Star, alongside the Portuguese state and a banking resolution fund owned by Portugal’s banks, it was disclosed that these entities hold 11.5% and 13.5% stakes in Novo Banco, respectively.
This acquisition is set within a broader context of increased cross-border and domestic banking mergers across Europe. Regulators are working towards integrating the financial sector to counter growing competition from US banks.
According to BPCE’s representatives, this deal aligns with the European Central Bank’s (ECB) advocacy for consolidation in the European banking sector. The acquisition will allow BPCE to expand its retail market presence beyond France into Portugal, where it currently operates two banking groups.
Additionally, since 2024, BPCE has been actively advancing its operations by partnering with BNP Paribas, aiming to jointly acquire technology for processing payments. This partnership aims to enhance the payment landscape in Europe, leveraging a processor that will handle all card transactions from BNP Paribas and Groupe BPCE, accounting for about 16 billion transactions.
It is estimated that this acquisition could be completed during the first half of 2026. Currently, Novo Banco manages over 300 bank branches with more than 4,200 employees.
