BPCE to acquire Novo Banco for USD 7.4 billion

The announcement was made by BPCE and Lone Star on 13 June 2025, as well as the Portuguese state and a banking resolution fund financed by the country’s banks, which own 11.5% and 13.5% in Novo Bank. The deal comes during a period of increased cross-border and domestic banking mergers in Europe, where regulators have been working on industry consolidation to integrate the financial sector and counter growing competition from US banking organisations.

Regarding the acquisition, BPCE’s representatives stated that the deal falls in line with what the European Central Bank (ECB) is advocating for, specifically for European banking consolidation. Additionally, the cash acquisition of Novo Banco would allow the bank to expand into a second retail market outside France, where it now operates two banking groups. The Bank of France underlined that this comes as one of the largest cross-border deals in Europe in recent years, with the decision supporting both the banking union and the entire French banking system.

Furthermore, BPCE already holds a consumer credit operation in Portugal, and its subsidiary Natixis has a technology centre managing IT services and back-office operations for the entire group. Currently, Novo Banco has approximately 300 bank branches and over 4,200 employees.

When it comes to the completion of the acquisition, BPCE stated that the deal should finalise during the first half of 2026.

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