Portugal’s finance minister reticent over Novobanco selloff to Spanish bank

Portugal’s Finances minister, Joaquim Miranda Sarmento has expressed reservations over a possible acquisition bid for Novobanco from Spain’s Caixabank.

The minister does not believe it would be a good idea for Portugal’s banking system to be even more dominated by Spanish banks than it already is.

“It’s not in Portugal’s interest to have an excessive concentration of the banking sector with banks from one single country, as is the case with Spain”, he said in an interview with RTP.

“Spanish banks represent just over a third of the Portuguese market. I believe that because of a question of concentration and dependence this percentage should not increase,” he emphasised,

Miranda Sarmento was commenting on a possible acquisition by Caixabank – which in Portugal already controls BPI and has already hired Morgan Stanley and Deloitte to value the operation on Novobanco at a time when the process is entering the decisive phase and Lone Star is trying two ways to sell the Portuguese institution: either by a direct sale to another bank or an IPO (Initial Public Offering), with a stock market flotation.

“It will make Gonzalo Gortázar (CEO of Caixabank) think twice, but I don’t see him stopping (to reevaluate an acquisition bid). That the operation is being studied cannot be denied. The minister’s statements could throw cold water on the situation, but I don’t think it will stop it”, a source told the business daily ECO.