Lone Star has agreed to sell its 75% stake in Novo Banco to BPCE for €6.4 billion, marking a significant exit for the private equity firm and a strategic expansion for the French banking group.

Information on the Target

Novo Banco, the fourth-largest lender in Portugal, was established in 2014 from the remnants of the failed Banco Espírito Santo. As of March 2025, the bank reported €30 billion in deposits and €28.5 billion in net loans, representing a 9% market share in Portugal. Under the ownership of Lone Star, which acquired a 75% stake in 2017 for €1 billion, Novo Banco has undergone significant restructuring to return to profitability and strengthen its market position.

Currently, Novo Banco operates approximately 300 branches across the country and employs over 4,200 individuals. The bank has played a pivotal role in stabilizing the Portuguese banking sector following the financial crisis, making it an attractive acquisition target for larger financial institutions.

Industry Overview in Portugal

The Portuguese banking sector has experienced considerable changes in recent years, characterized by a wave of consolidation aiming to strengthen the industry after the financial crisis. Many banks have restructured their ope