BPCE signs a Memorandum of Understanding to acquire novobanco, Portugal’s fourth-largest bank

BPCE signs a Memorandum of Understanding to acquire novobanco, Portugal’s fourth-largest bank

Paris, 06 13 2025

Groupe BPCE, the second-largest bank in France¹ and the fourth-largest in Europe², has signed a Memorandum of Understanding for the acquisition of a 75% equity interest in novobanco from the private equity firm Lone Star Funds. The transaction, representing a cash amount of approximately³ €6.4bn (for 100% of the shares) and a multiple of around 9x annual earnings, 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, a solid player in Portugal demonstrating exemplary growth in recent years

Novobanco, Portugal’s fourth-largest bank⁴, has built up a solid franchise and holds market shares of c.9% with individual customers and c.14% with corporate clients. It 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%⁵. These results have been underpinned by the quality of novobanco’s teams, together with the engagement of its shareholders for the last eight years.

BPCE, lasting engagement in Portugal, focused on financing the economy

BPCE currently employs over 3,000 staff in Portugal, a figure testifying to its lasting engagement with the country. Since 2017, the opening of a multi-business center of expertise in Porto has deepened its local ties.

By welcoming novobanco into the Group, alongside the Banque Populaire and Caisse d’Epargne banking networks, which already serve the French economy, BPCE would further strengthen its role as an important development partner for the Portuguese economy, recognized for its solid fundamentals and resilience. Through the transaction, BPCE intends to facilitate financing for local companies and individuals’ projects, while also expanding the range of services offered to Portuguese customers. BPCE will leverage all of its expertise to strengthen value creation in close collaboration with novobanco.