(Alliance News) - Paris-based banking group BPCE said Friday it has agreed to buy Lisbon-based Novo Banco for around EUR6.4 billion, calling it the biggest eurozone cross-border acquisition in over a decade.

BPCE, a group that includes Banque Populaire and Caisse d'Epargne, said the deal fits within its strategy of expanding in Europe and beyond.

Novo Banco, Portugal's fourth biggest bank by assets, posted a net profit of nearly EUR750 million last year. It has 1.7 million customers and 4,200 employees.

Novo Banco "possesses excellent fundamentals, strong growth potential and an already high level of profitability", BPCE Chief Executive Nicolas Namias said in a statement.

Novo Banco is the successor of Banco Espirito Santo, which collapsed in 2014 amid accounting irregularities.

BPCE said it has signed a memorandum of understanding to acquire a 75% stake in Novo Banco from US private equity Lone Star Funds.

The French bank said it was in talks with the Portuguese government to acquire its 11.5% stake in Novo Banco and the 13.5% share held by the Portuguese Banking Resolution Fund.

It would be "the biggest cross-border acquisition in the euro zone for more than 10 years", it said, adding that the transaction is expected to close in the first half of 2026.

source: AFP

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