France’s BPCE group leads race to buy Novobanco, according to Bloomberg
The owner of Natixis is trying to reach an agreement with Lone Star. Americans are still considering a possible IPO. A decision on the future of Novobanco is expected to be made in the coming days.
France’s BPCE leads the race to buy Novobanco, according to Bloomberg, citing sources close to the process. The owner of Natixis is ahead of Caixabank and is trying to close a deal with Lone Star. The Americans are still considering a possible IPO.
The US fund, which controls 75% of Novobanco, is expected to make a decision in the coming days regarding the future of the Portuguese financial institution.
Bloomberg also reports that discussions are ongoing and that negotiations could still fall through. None of the parties involved in this process wanted to comment.
The investment house JB Capital valued Novobanco at between €5.5 billion and €7 billion, according to an estimate published in March.
BPCE already has a presence in Portugal through a Natixis technology centre located in Porto. The acquisition of Novobanco would therefore allow it to expand its commercial banking activities in the Portuguese market.
Behind in the race for Novobanco is the Spanish group Caixabank, which owns BPI. The Portuguese government has expressed its opposition to a deal involving a Spanish bank, as it would result in a strengthening of the Spanish presence in the national banking system from 30% to 50%, according to Finance Minister Joaquim Miranda Sarmento. The state controls the other 25% of Novobanco through the Directorate-General for Treasury and Finance and the Resolution Fund.