Archive · 14 Jun 2025
Southern European Banking Sector Sees Wave of Mergers and Acquisitions
Banks in Southern Europe are buying each other!
It started with a big deal in Spain and now includes Portugal.
A French bank is buying a big part of a Portuguese bank.
These banks are doing well and have money to spend.
It's like a game of musical chairs, but with money and banks.
Meanwhile, banks in Northern Europe are not making as many deals.
Governments are happy to see the foreign banks invest, because it shows that those countries are improving their economy.
Lone Star agreed to sell its 75% stake in Portugal's Novo Banco to French banking group BPCE.
The deal is poised to be the biggest cross-border takeover in the Eurozone banking sector in a decade.
Southern European banks are experiencing a wave of mergers and acquisitions, contrasting with the subdued activity in Northern Europe.
Rising share prices and cleaned-up balance sheets have facilitated these deals.
Governments in Greece and Portugal are selling their bank stakes to attract foreign investment.
- Who
- Banks like BPCE, Novo Banco, BBVA, Banco Sabadell, UniCredit, and Mediobanca.
- What
- A wave of bank acquisitions and mergers in Southern Europe.
- When
- Dealmaking began a little over a year ago.
- Where
- Southern Europe, particularly Portugal, Spain, Italy, and Greece.
- Why
- Stronger balance sheets and higher share prices have fueled the M&A activity.
Government Stances
Bank Performance
Government Attitudes Towards Mergers
Government Stances
Governments in Portugal and Greece welcome foreign investment and support banking deals.
Bank Performance
Governments in Spain have voiced opposition to some deals, citing competition concerns.
- Buyer
- BPCE SA (French banking group)
- Seller
- Lone Star
- Target
- Novo Banco SA (Portugal)
- Deal Type
- Cross-border takeover
- Region
- Southern Europe
- Key Driver
- Rising share prices