BPCE says Novobanco deal marks long-term Portugal push

France’s BPCE said its €6.7 billion acquisition of Novobanco shows a “long-term commitment to Portugal”, in a deal that strengthens its position in the country’s banking market and makes it a larger employer there. In a statement released on Thursday, the French group said the transaction would lift its local workforce to nearly 8,000 employees, including staff at Banco Primus, Oney and now Novobanco.

BPCE said the takeover would allow it to position itself as a reference bank for Franco-Portuguese business ties. It also described the transaction as “the largest cross-border banking acquisition in the euro zone in more than ten years”, calling the integration of Novo Banco a major step in its Vision 2039 strategy to grow and diversify in France, the euro zone and internationally.

The group said the deal increases its exposure to what it called a dynamic Portuguese market with solid fundamentals, while also diversifying its interest-rate profile through a larger share of variable-rate lending, which is more common in Portugal. BPCE added that Novo Banco would strengthen its role in financing the Portuguese economy and gain greater growth potential by joining a well-capitalised European banking group.

According to BPCE, the strategy for Novo Banco includes expanding retail and corporate banking, with a focus on small and medium-sized companies, large corporate and institutional clients, and products such as savings, insurance and private banking. The group also said it plans to speed up digital transformation and increase financing for the environmental transition for households and businesses.

“We are pleased and proud to welcome Novo Banco to BPCE and to strengthen our long-term commitment to Portugal,” BPCE chief executive Nicolas Namias said in the statement. He added that the transaction was “very good news” for Novobanco, BPCE and for Europe’s economic and financial sovereignty.

Originally published at Eco.pt