BPCE Plans 75% Novo Banco Stake Acquisition in €6.4B Deal

French banking group BPCE has agreed to acquire a 75% stake in Portugal's Novo Banco from U.S. private equity firm Lone Star in a deal valued at approximately €6.4 billion ($7.39 billion). This acquisition marks the largest cross-border banking operation in the Eurozone in over a decade and significantly expands BPCE's footprint, making Portugal its second-largest retail banking market. Novo Banco holds a notable market share in Portugal with 9% of individual customers and 14% of corporate clients, operating 290 branches with 4,200 employees. The transaction involves negotiations with the Portuguese government and bank resolution fund, which hold minority stakes, and is expected to be finalized by mid-2026. This deal highlights a broader trend of consolidation in European banking aimed at achieving scale and operational efficiency amid tightening regulations and competitive pressures. Investors should anticipate further mergers and acquisitions as financial institutions seek stronger market positions and resilience.