106
106
  • Transaction / Assets
    Novo Banco
  • Seller
    Novo Banco
  • Buyer
    Lone Star
  • € MM

Lone Star has notified Brussels of its purchase of Novo Banco

7 July 2017

On June 12, Lone Star sent the European Commission a prior notification of concentration notification

Antonio Costa, Prime Minister of Portugal, expects the sale of Novo Banco to be completed by November. Everything seems to be on track for the sale. According to this Friday’s edition of the “Jornal Económico,” Lone Star sent the European Commission a prior notification of concentration on June 12, expecting to receive authorization for its acquisition of Novo Banco, as provided for by European merger regulations.

“The Commission received notification of a proposed concentration (…) by which Lone Star Funds (USA) will acquire … control of the whole of Novo Banco (Portugal) through Nani Holdings, SGPS (Portugal), through the acquisition of shares,” reads a Commission note published on June 22.

The weekly recalls that the sale of 75% of Novo Banco to Lone Star requires the authorization of DG Comp and the ECB. Both institutions have been in contact with the Resolution Fund and Novo Banco.

When asked about the notification by “Económico”, the European Competition Directorate said that “the Commission is in constructive contact with the Portuguese authorities regarding Novo Banco’s final restructuring plan, which must ensure that the bank is viable in the long term without the need for further state support.”

Original Story: EXPRESSO – Tiago Miranda

Translation: Richard Turner