French lender Groupe BPCE has agreed to acquire a 75% stake in novobanco, a Portugal-based bank, from Lone Star Funds in a transaction valued at approximately €6.4bn.
The deal is the most substantial cross-border acquisition in the eurozone in over ten years and is part of BPCE’s VISION 2030 strategic plan, designed to expand its operations in France, Europe, and beyond.
Once finalised, the acquisition will make Portugal the group’s second-largest domestic retail market. Novobanco holds a 9% share in the individual customer segment and 14% in the corporate client sector within Portugal.
The bank serves 1.7 million individual clients and manages a corporate loan portfolio worth €17bn. Employing 4,200 staff, novobanco operates 290 branches and works with an extensive network of external partners.
In recent years, novobanco has become one of Europe’s more profitable banks, achieving a cost-income ratio below 35% and a return on tangible equity over 20%.
The acquisition offers BPCE geographical diversification by entering Portugal’s vibrant economy and enhances its balance sheet by increasing the share of variable-rate loans, thereby boosting its revenue structure.
This move follows the establishment of BPCE Equipment Solutions earlier in 2025 and an ongoing project to form a leading European asset manager with Generali. Following the acquisition, BPCE’s Common Equity Tier 1 (CET1) ratio is expected to stay above 15%.
BPCE will consult with employee representative bodies before signing the acquisition agreement. The deal is expected to close in the first half of 2026.
BPCE CEO Nicolas Namias said: “Novobanco possesses excellent fundamentals, strong growth potential and an already high level of profitability. For its part, BPCE is a major banking player in France notably thanks to the Banque Populaire and Caisse d’Epargne banking networks.
“With the acquisition of novobanco, BPCE would become a retail banking player in Europe and would actively participate in financing the Portuguese economy. The projected transaction marks a key stage in the execution of its “Vision 2030” strategic plan, announced close to a year ago.
“BPCE’s executive managers and employees are all particularly enthusiastic about the prospect of welcoming novobanco, its management and its 4,200 employees, in order to write a new chapter of growth, innovation and performance in Europe together.”
