Lone Star close to securing sale of Novobanco to France’s BPCE
The US fund has chosen the French group that owns Natixis to sell its 75% stake in Novobanco, reports ECO. Negotiations have already begun and the valuation could be close to 7 billion.
Lone Star is finalising the sale of Novobanco to the France’s Groupe BPCE. The US fund that controls 75% of the Portuguese bank has already started negotiations with the French group that owns Natixis, according to ECO. The decision is expected to be announced to the market this Thursday.
Left behind stays the idea of selling up to 30% of Novobanco on the stock exchange, an option that was on the table until the last moment.
The negotiations will be based on a valuation of Novobanco of around 7 billion euros. In March this year, JB Capital valued Novobanco at between 5.5 billion and 7.2 billion euros.
Lone Star acquired a 75% stake in Novobanco in October 2017 in exchange for an injection of 1 billion euros. The remaining 25% is in the public sphere, namely the Resolution Fund (13.54%) and the Directorate-General for Treasury and Finance (11.46%).
With more than 4,200 employees and almost 300 branches, Novobanco recorded profits of 177.2 million euros in the first quarter of the year, down 1.9% compared to the same period in 2024, with the result being penalised by the contraction in net interest income. It is the fourth largest bank operating in Portugal, with a market share of just over 9%.
BPCE is already present in Portugal through a Natixis technology centre located in Porto. The acquisition of Novobanco would allow it to extend its activity to commercial banking in the Portuguese market.
Left 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 Spain increasing its presence in the national banking system from 30% to 50%, according to Finance Minister Joaquim Miranda Sarmento.
