ECB approves the purchase of Novobanco by BPCE

The European Central Bank (ECB) has given the green light to the acquisition of Novobanco by the French financial group BPCE, according to news source Observador, paving the way for the operation to be completed this April, less than a year after the initial agreement between the parties.

The approval was issued through the Single Supervisory Mechanism (SSM), the body that oversees the largest banks in the Eurozone, and was the last regulatory hurdle remaining for the transfer of ownership of the bank.

The closing of the deal is scheduled for April 30, although the date has not yet been fully set, according to Observador.

The agreement dates back to June 2025, when the ECB and the US fund Lone Star reached an understanding for the sale of 75% of Novobanco’s capital. With this sale, the State will receive between €1.6Bn and €1.7Bn – corresponding to its 25% stake in the bank – while Lone Star will receive approximately €4.8 billion for the 75% it has held since 2017.

The ECB’s approval follows authorisation already granted by the European Commission last December, which concluded that the transaction did not raise competition concerns.

Source: Observador; Credits: Jornal PT50 – Photo of Mark Bourke, CEO of Novobanco.