Lone Star approaches CaixaBank to sell Novo Banco for $2 billion – Banking and Financial Services

Lone Star is intensifying its efforts to sell Novo Banco, after approaching CaixaBank (owner of BPI) as a potential buyer, the Spanish newspaper reported on Monday. fuzpopoly, Citing sources in the financial sector.

The newspaper added that the venture capital fund intends to dispose of Novo Banco for two billion euros.

At the moment, the talks are only informal and serve to gauge CaixaBank’s interest in this potential operation. The newspaper adds that Novo Banco has officially informed investors that Plan A includes taking the financial institution public, although the sector believes that the bank will have to be sold to one of the Spanish banking giants.

In an interview with Negócios, in March, the CEO of Novo Banco said, “We can only point to the IPO, because beyond that it is not our choice,” Mark Burke stressed. “Right now, we already have a bank that is able to compete and be in the market on our own. A strong bank that operates independently. So, by building a path around this, our ability to compete and be in the market on our own, by being able to compete and be in the market on our own, will help us,” Mark Burke added at the time. “Our eyes are on the prospectus, this is the path we are taking.”

The sale must take place between the end of this year or the first months of next year. Vozpopoli highlights that this possibility “raises concerns among the Portuguese authorities,” due to the risk of concentration in the financial sector.

In February, the Spanish newspaper had already reported that Lone Star was surveying Spanish banks about the possibility of selling Novo Banco, with Banco Santander and Banco Caixa considered favorites in Spain to buy at the time.

In April, Negócios reported that candidates had been appointed to buy the institution: Spain’s CaixaBank and BCP. Any of these scenarios would create a giant in the market.

The sale of Novo Banco to one of the largest Spanish banking groups already present in Portugal would create an institution that, in terms of the volume of assets and deposits, would be the largest among institutions operating in the country and would increase Spain’s weight in the country. The national financial system.

A marriage with the Central Popular Bank would create a financial giant that would surpass the Caixa Geral de Depósitos (CGD), even in terms of deposits, a criterion by which the public bank occupies a prominent position.

Vozpópuli contacted an official source at CaixaBank and declined to comment on the case. Novo Banco – when questioned by Negócios – declined to comment.

Lone Star bought 75% of Novo Banco in 2017, while the remaining 25% was in the hands of the state and the Resolution Fund.

(News updated at 10:07 a.m. with Novo Banco reaction)