French banking group BPCE said Friday it has agreed to buy Portugal鈥檚 Novo Banco for around 6.4 billion euros ($7.4 billion), calling it the biggest eurozone cross-border acquisition in over a decade.
BPCE, a group that includes Banque Populaire and Caisse d鈥橢pargne, said the deal fits within its strategy of expanding in Europe and beyond.
Novo Banco, Portugal鈥檚 fourth biggest bank by assets, posted a net profit of nearly 750 million euros last year. It has 1.7 million customers and 4,200 employees.
Novo Banco 鈥榩ossesses excellent fundamentals, strong growth potential and an already high level of profitability鈥�, 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 per cent 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 per cent stake in Novo Banco and the 13.5 per cent share held by the Portuguese Banking Resolution Fund.
It would be 鈥榯he biggest cross-border acquisition in the euro zone for more than 10 years鈥�, it said, adding that the transaction is expected to close in the first half of 2026.