Brussels, Dec. 5, 2025 (Lusa) - The European Commission on Friday approved the sale of Novo Banco to BPCE, France's second-largest banking group, which will become the sole shareholder of Portugal's fourth-largest bank, considering that there are no competition concerns.

"The European Commission has approved, under the European Union Merger Regulation, the acquisition of sole control of Portugal's Novo Banco by France's BPCE. The transaction mainly concerns the Portuguese banking and financial sectors," the EU government announced in a statement.

According to the institution, the "notified transaction does not raise competition concerns, given the limited combined market position of the companies resulting from the proposed transaction", in a deal formalised in mid-2025 with a valuation of around €6.4 billion and relating to 100% of Novo Banco's capital.

Last June, BPCE (Banque Populaire et Caisse d'Epargne), France's second-largest banking group, signed a memorandum of understanding to purchase 75% of Novo Banco's share capital from Lone Star Funds.

In October, the Ministry of Finance and the Resolution Fund signed an agreement with the BPCE group and Nani Holdings, the majority shareholder of Novo Banco (and an entity owned by Lone Star Funds), for the sale of the minority stakes held in the institution (more specifically, 11.5% by the Portuguese State and 13.5% by the Resolution Fund).

At the time, the Ministry of Finance stressed that "this operation successfully concludes a long process, which began with the resolution of BES [Banco Espírito Santo] and the subsequent sale of Novo Banco to Lone Star, contributing to the safeguarding of financial stability" in Portugal.

"This operation also allows for a significant recovery of public funds used in the restructuring of Novo Banco. The sale of the State and Resolution Fund's holdings in Novo Banco, combined with the distribution of dividends that took place this year, allows the public sector to recover almost €2 billion of the funds injected into the institution," the ministry said.

The official completion of the transaction is expected in the first half of 2026, subject to regulatory approvals and the fulfilment of contractual formalities.

Novo Banco emerges as a healthy financial institution resulting from the resolution of BES's bankruptcy.

ANE/ADB // ADB.

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