Novo Banco's French Owner Takes a 7 Percent Stake in Spain's Sabadell, Worth About 1.2 Billion Euros, and Seeks a Board Seat

BPCE, the French banking group that took full ownership of Novo Banco in April, has bought about 7 percent of Spain's Banco Sabadell and wants a seat on its board. The two banks announced the deal on Tuesday morning in a joint statement, which both described as friendly.

Neither side disclosed the price. At Tuesday's market prices a 7 percent stake in Sabadell is worth about 1.19 billion euros, ECO calculated. Sabadell's shares rose 2.5 percent to 3.64 euros in early trading.

A stake, not a takeover

According to the statement, BPCE built the position through market purchases and financial instruments. It says it intends to be "a stable and long-term shareholder" and that it does not intend its holding to exceed 9.9 percent. With Sabadell's backing, BPCE will now open talks with Spanish and European supervisors on appointing a director to the Sabadell board, subject to governance procedures and regulatory approval.

The two groups also plan to explore business cooperation, in particular in corporate and investment banking, equipment leasing, consumer credit and clients who operate across borders. They expect those discussions to conclude in early 2027, and say they will inform the market of any material development.

"BPCE's investment in Sabadell is fully in line with its Vision 2030 strategic plan. It marks a further step in its ambition to develop and diversify its presence in Europe," said Nicolas Namias, BPCE's chief executive. Sabadell's chairman, Josep Oliu, called the investment "a recognition of the strength of our standalone project", and its chief executive, Marc Armengol, said it brought in "a partner with a long-term vision".

Why the word "standalone" matters

Sabadell is Spain's fourth-largest bank, with 200 billion euros in assets, seven million customers, 1,116 branches and 13,850 staff, and it reported a net profit of 971 million euros for the first half of 2026. Last year it saw off a hostile takeover bid from its larger rival BBVA, which failed, and it has since sold its British arm, TSB, to concentrate on going it alone, as ECO noted. The statement stresses that BPCE "is fully supportive" of Sabadell's strategy and its current management.

Where Novo Banco fits

For Portugal, the deal means the owner of the country's fourth-largest bank now holds a strategic stake on the other side of the border. BPCE, France's second-largest banking group and the parent of Banque Populaire, Caisse d'Epargne and Natixis, counts Novo Banco among its European businesses alongside its equipment leasing and Oney consumer credit arms.

Beyond the company description at its foot, however, the statement does not mention Novo Banco, and it sets out no role for the Portuguese bank in the cooperation the two groups plan to explore. Cross-border clients are on the list of areas to study, which matters for the many Portuguese and Spanish companies trading across the Iberian market, but any concrete plan will only be known when the talks end next year.

BPCE completed its purchase of Novo Banco on 30 April, buying out Lone Star and the stakes held by the Portuguese state and the Resolution Fund. In July it lined up António Horta Osório as Novo Banco's vice-chairman.