Latest news with #novobanco
Yahoo
2 days ago
- Business
- Yahoo
Bpce: BPCE signs a Memorandum of Understanding to acquire novobanco, Portugal's fourth-largest bank
BPCE signs a Memorandum of Understanding to acquire novobanco, Portugal's fourth-largest bank Paris, 06 13 2025 Groupe BPCE, the second-largest bank in France1 and the fourth-largest in Europe2, has signed a Memorandum of Understanding for the acquisition of a 75% equity interest in novobanco from the private equity firm Lone Star Funds. The transaction, representing a cash amount of approximately3 €6.4bn (for 100% of the shares) and a multiple of around 9x annual earnings, is the biggest cross-border acquisition in the euro zone for more than 10 years. Following the creation of BPCE Equipment Solutions at the start of the year, this project marks a new key stage in the execution of the 'Vision 2030' strategic plan, geared to developing and diversifying BPCE in France, Europe and the wider world. On completion of the transaction, Portugal would become the Group's second-largest domestic retail market. Novobanco, a solid player in Portugal demonstrating exemplary growth in recent years Novobanco, Portugal's fourth-largest bank4, has built up a solid franchise and holds market shares of c.9% with individual customers and c.14% with corporate clients. It has 1.7 million individual customers and manages a €17bn corporate loan book. With its 4,200 employees, novobanco operates through some 290 branches and an extensive network of external partners, while also offering a rich customer experience through its digital channels. In recent years, novobanco has become one of the most profitable banks in Europe, posting a cost-income ratio under 35% and a return on tangible equity (RoTE) exceeding 20%5. These results have been underpinned by the quality of novobanco's teams, together with the engagement of its shareholders for the last eight years. BPCE, lasting engagement in Portugal, focused on financing the economy BPCE currently employs over 3,000 staff in Portugal, a figure testifying to its lasting engagement with the country. Since 2017, the opening of a multi-business center of expertise in Porto has deepened its local ties. By welcoming novobanco into the Group, alongside the Banque Populaire and Caisse d'Epargne banking networks, which already serve the French economy, BPCE would further strengthen its role as an important development partner for the Portuguese economy, recognized for its solid fundamentals and resilience. Through the transaction, BPCE intends to facilitate financing for local companies and individuals' projects, while also expanding the range of services offered to Portuguese customers. BPCE will leverage all of its expertise to strengthen value creation in close collaboration with novobanco. Execution of the 'Vision 2030' strategic plan The acquisition of novobanco would help diversify BPCE in two respects: geographically, via access to a dynamic economy, and in balance sheet terms, by increasing the proportion of variable rate loans on its balance sheet, thus improving its revenue profile. The acquisition would be a growth driver for the whole Group. It is perfectly consistent with BPCE's 'Vision 2030' strategy, underlining the Group's determination to expand in France, Europe and the wider world through strategic investments that create lasting value. The transaction marks a new key stage in the Group's European-scale growth, following the creation of BPCE Equipment Solutions in February 2025 and the ongoing project to create the leading European asset manager in partnership with Generali. On completion of the transaction, Groupe BPCE's CET1 ratio would remain above 15%. Timing of the transaction BPCE is engaging in discussions with the Portuguese government and the Portuguese Banking Resolution Fund with a view to acquiring their equity interests in novobanco (11.5% and 13.5%, respectively), on identical terms. BPCE will proceed with the necessary consultations with employee representative bodies in order to sign the acquisition contract. The project is projected for completion in the first half of 2026. For Nicolas Namias, CEO of BPCE 'BPCE is pleased to announce today the project to acquire novobanco in Portugal. Holding market shares of c.9% with individual customers and c.14% with corporate clients, novobanco possesses excellent fundamentals, strong growth potential and an already high level of profitability. Major player in local banking in France thanks to the Banque Populaire and Caisse d'Epargne banking networks, BPCE would become a retail banking player in Europe with the acquisition of novobanco and would actively participate in financing the Portuguese economy. A few months after the creation of BPCE Equipment Solutions, the projected transaction marks a new key stage in the execution of our Vision 2030 strategic plan, announced close to a year ago. The financial terms of the transaction reflect a disciplined and stringent valuation approach, as well as our confidence in novobanco's ability to create value over time. 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'. About Groupe BPCE Groupe BPCE is the second-largest banking group in France and the fourth-largest in the euro zone in terms of capital. Through its 100,000 staff, the group serves 35 million customers – individuals, professionals, companies, investors and local government bodies – around the world. It operates in the retail banking and insurance fields in France via its two major networks, Banque Populaire and Caisse d'Epargne, along with Banque Palatine and Oney. It also pursues its activities worldwide with the asset & wealth management services provided by Natixis Investment Managers and the wholesale banking expertise of Natixis Corporate & Investment Banking. The Group's financial strength is recognized by four credit rating agencies with the following senior preferred LT ratings: Moody's (A1, stable outlook), Standard & Poor's (A+, stable outlook), Fitch (A+, stable outlook) and R&I (A+, stable outlook). Press contact Groupe BPCEChristophe Gilbert : 33(0)1 40 39 66 00 / 33(0)6 73 76 38 - 1 Ranking based on market share of outstanding loans for all non-financial customer segments (Banque de France 3Q24)2 Ranking in terms of capital (€73bn for BPCE) 3 Estimated consideration as of December 2025 4 Ranking in terms of balance-sheet size at end-20245 In first-quarter 2025 Attachment 20250613_PR_BPCE_novobanco_GBSign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Bpce: BPCE signs a Memorandum of Understanding to acquire novobanco, Portugal's fourth-largest bank
BPCE signs a Memorandum of Understanding to acquire novobanco, Portugal's fourth-largest bank Paris, 06 13 2025 Groupe BPCE, the second-largest bank in France1 and the fourth-largest in Europe2, has signed a Memorandum of Understanding for the acquisition of a 75% equity interest in novobanco from the private equity firm Lone Star Funds. The transaction, representing a cash amount of approximately3 €6.4bn (for 100% of the shares) and a multiple of around 9x annual earnings, is the biggest cross-border acquisition in the euro zone for more than 10 years. Following the creation of BPCE Equipment Solutions at the start of the year, this project marks a new key stage in the execution of the 'Vision 2030' strategic plan, geared to developing and diversifying BPCE in France, Europe and the wider world. On completion of the transaction, Portugal would become the Group's second-largest domestic retail market. Novobanco, a solid player in Portugal demonstrating exemplary growth in recent years Novobanco, Portugal's fourth-largest bank4, has built up a solid franchise and holds market shares of c.9% with individual customers and c.14% with corporate clients. It has 1.7 million individual customers and manages a €17bn corporate loan book. With its 4,200 employees, novobanco operates through some 290 branches and an extensive network of external partners, while also offering a rich customer experience through its digital channels. In recent years, novobanco has become one of the most profitable banks in Europe, posting a cost-income ratio under 35% and a return on tangible equity (RoTE) exceeding 20%5. These results have been underpinned by the quality of novobanco's teams, together with the engagement of its shareholders for the last eight years. BPCE, lasting engagement in Portugal, focused on financing the economy BPCE currently employs over 3,000 staff in Portugal, a figure testifying to its lasting engagement with the country. Since 2017, the opening of a multi-business center of expertise in Porto has deepened its local ties. By welcoming novobanco into the Group, alongside the Banque Populaire and Caisse d'Epargne banking networks, which already serve the French economy, BPCE would further strengthen its role as an important development partner for the Portuguese economy, recognized for its solid fundamentals and resilience. Through the transaction, BPCE intends to facilitate financing for local companies and individuals' projects, while also expanding the range of services offered to Portuguese customers. BPCE will leverage all of its expertise to strengthen value creation in close collaboration with novobanco. Execution of the 'Vision 2030' strategic plan The acquisition of novobanco would help diversify BPCE in two respects: geographically, via access to a dynamic economy, and in balance sheet terms, by increasing the proportion of variable rate loans on its balance sheet, thus improving its revenue profile. The acquisition would be a growth driver for the whole Group. It is perfectly consistent with BPCE's 'Vision 2030' strategy, underlining the Group's determination to expand in France, Europe and the wider world through strategic investments that create lasting value. The transaction marks a new key stage in the Group's European-scale growth, following the creation of BPCE Equipment Solutions in February 2025 and the ongoing project to create the leading European asset manager in partnership with Generali. On completion of the transaction, Groupe BPCE's CET1 ratio would remain above 15%. Timing of the transaction BPCE is engaging in discussions with the Portuguese government and the Portuguese Banking Resolution Fund with a view to acquiring their equity interests in novobanco (11.5% and 13.5%, respectively), on identical terms. BPCE will proceed with the necessary consultations with employee representative bodies in order to sign the acquisition contract. The project is projected for completion in the first half of 2026. For Nicolas Namias, CEO of BPCE 'BPCE is pleased to announce today the project to acquire novobanco in Portugal. Holding market shares of c.9% with individual customers and c.14% with corporate clients, novobanco possesses excellent fundamentals, strong growth potential and an already high level of profitability. Major player in local banking in France thanks to the Banque Populaire and Caisse d'Epargne banking networks, BPCE would become a retail banking player in Europe with the acquisition of novobanco and would actively participate in financing the Portuguese economy. A few months after the creation of BPCE Equipment Solutions, the projected transaction marks a new key stage in the execution of our Vision 2030 strategic plan, announced close to a year ago. The financial terms of the transaction reflect a disciplined and stringent valuation approach, as well as our confidence in novobanco's ability to create value over time. 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'. About Groupe BPCE Groupe BPCE is the second-largest banking group in France and the fourth-largest in the euro zone in terms of capital. Through its 100,000 staff, the group serves 35 million customers – individuals, professionals, companies, investors and local government bodies – around the world. It operates in the retail banking and insurance fields in France via its two major networks, Banque Populaire and Caisse d'Epargne, along with Banque Palatine and Oney. It also pursues its activities worldwide with the asset & wealth management services provided by Natixis Investment Managers and the wholesale banking expertise of Natixis Corporate & Investment Banking. The Group's financial strength is recognized by four credit rating agencies with the following senior preferred LT ratings: Moody's (A1, stable outlook), Standard & Poor's (A+, stable outlook), Fitch (A+, stable outlook) and R&I (A+, stable outlook). Press contact Groupe BPCEChristophe Gilbert : 33(0)1 40 39 66 00 / 33(0)6 73 76 38 - 1 Ranking based on market share of outstanding loans for all non-financial customer segments (Banque de France 3Q24)2 Ranking in terms of capital (€73bn for BPCE) 3 Estimated consideration as of December 2025 4 Ranking in terms of balance-sheet size at end-20245 In first-quarter 2025 Attachment 20250613_PR_BPCE_novobanco_GB
Business Wire
2 days ago
- Business
- Business Wire
Lone Star Announces Sale of novobanco to BPCE
LUXEMBOURG & DALLAS & NEW YORK & LONDON & TOKYO--(BUSINESS WIRE)--Nani Holdings S.à. r.l., an affiliate of Lone Star Funds ('Lone Star'), today announced that it has signed a Memorandum of Understanding for the sale of Novo Banco, S.A. ('novobanco' or 'the bank'), Portugal's fourth-largest bank, to BPCE, a leading European banking institution, for a cash consideration payable at closing which values 100% of the share capital at an estimated €6.4 billion as of end 2025. This transaction marks the culmination of a multi-year transformation of novobanco since Lone Star acquired 75% of the bank in 2017. Under Lone Star's stewardship, in cooperation with other shareholders, novobanco has undergone a comprehensive turn-around, establishing itself as one of the most profitable banks in Europe, with a target return on tangible equity (RoTE) exceeding 20%. The bank has significantly de-risked its balance sheet, reducing non-performing loans to de minimis levels, and has made substantial investments in digital transformation and customer experience. Throughout this period, novobanco has strengthened its role as a trusted partner for Portuguese households and successfully positioned itself as a preferred bank for SMEs across Portugal. Long-Term Commitment to Portugal and novobanco BPCE's acquisition of novobanco underscores its full confidence in the Portuguese banking system and the resilience of its economy. With €73bn in equity, a CET1 ratio of 16.2% and over 35 million clients globally, BPCE brings the strength and stability of a major European cooperative banking group to novobanco. This acquisition reflects BPCE's commitment to fostering long-term growth and enhancing its presence in Portugal through several key principles: Commitment to the Portuguese economy: With a longstanding commitment to Portugal, BPCE aims to build on its foundation to further support the growth of novobanco. Strong Complementarities: BPCE seeks to drive novobanco's expansion by leveraging novobanco's extensive customer base and BPCE's diverse expertise to offer a wider range of value-added services. Vision for Sustainable Growth BPCE will support novobanco's growth into a leading financial institution in Portugal, serving individuals, SMEs and large corporates across the country. Under the stewardship of Lone Star, novobanco has transformed into one of Portugal's leading banks, achieving consistent financial performance and growing its customer base through innovation across both retail and commercial banking. Donald Quintin, Chief Executive Officer of Lone Star commented: 'We are proud to have supported novobanco's transformation to become one of Europe's leading and most profitable financial institutions. The bank has undergone a comprehensive transformation over the last eight years, becoming a trusted partner for Portuguese households and businesses across the country. BPCE shares our ambition for novobanco and is well positioned to take the bank forward as it continues to deliver for customers, SMEs and the Portuguese economy as a whole.' Nicolas Namias, Chief Executive Officer of BPCE, stated: '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." Kambiz Nourbakhsh, Senior Managing Director at Lone Star Funds, added: 'This agreement marks a defining moment in the transformation of novobanco and is a testament to the extraordinary efforts of its leadership and employees over the last eight years. In BPCE, we have found a new owner for novobanco that has the experience and vision to build on its strong foundations and support the bank as it delivers on its long-term growth strategy.' Transaction Details Lone Star has agreed to sell its shares in novobanco to BPCE for a cash consideration payable at closing which values 100% of the share capital at an estimated €6.4 billion as of end 2025. The proposed acquisition is subject to the necessary consultations with employee representative bodies in order to sign the acquisition contract. The project is projected for completion in the first half of 2026. About Lone Star Funds Lone Star is a leading private equity firm advising funds that invest globally in corporate equity, credit, real estate and other financial assets. Since the establishment of its first fund in 1995, Lone Star has organized 25 private equity funds with aggregate capital commitments totaling approximately $95 billion. The firm organizes its funds in three series: the Opportunity Fund series; the Commercial Real Estate Fund series; and the U.S. Residential Mortgage Fund series. Lone Star invests on behalf of its limited partners, which include institutional investors such as pension funds and sovereign wealth funds, as well as foundations and endowments that support medical research, higher education, and other philanthropic causes. For more information regarding Lone Star Funds, go to About BPCE Groupe BPCE is the second-largest banking group in France and the fourth-largest in the euro zone in terms of capital. Through its 100,000 staff, the group serves 35 million customers – individuals, professionals, companies, investors and local government bodies – around the world. It operates in the retail banking and insurance fields in France via its two major networks, Banque Populaire and Caisse d'Epargne, along with Banque Palatine and Oney. It also pursues its activities worldwide with the asset & wealth management services provided by Natixis Investment Managers and the wholesale banking expertise of Natixis Corporate & Investment Banking. The Group's financial strength is recognized by four credit rating agencies with the following senior preferred LT ratings: Moody's (A1, stable outlook), Standard & Poor's (A+, stable outlook), Fitch (A+, stable outlook) and R&I (A+, stable outlook).
