Portugal may buy up to 5% of BCP to block Spanish buyers

Portugal’s government is considering buying a minority stake of less than 5% in BCP if Chinese group Fosun sells its 20.45% holding, in a move aimed at preventing Spanish investors from increasing their presence in the bank. BCP is Portugal’s only listed bank and the government sees it as a strategic asset.

According to Expresso, the plan would be to use a possible Fosun exit to strengthen Portuguese capital in the banking sector. Fosun has said it may consider selling its stake in the future, but that there is currently no organised sale process under way. The group, led by Guo Guangchang, has been a shareholder in BCP since 2016.

Fosun and Sonangol are BCP’s two largest shareholders, with 20.45% and 19.90% respectively, while the rest of the capital is largely spread across retail and institutional investors. The government’s thinking follows its recent entry into REN, where the state bought 13.7% of the capital for €390 million.

The possible BCP investment fits into Prime Minister Luís Montenegro’s stated strategy of taking stakes in profitable companies considered strategic for the economy through a sovereign fund that has yet to be created. In banking, the government also wants to limit further exposure to foreign capital, especially Spanish, in a market where Santander, BPI, Abanca, Bankinter and BBVA already operate.

Originally published at Eco.pt