EU Blesses Portugal's Novo Banco Sale Under State Aid Rules

Law360, New York (October 11, 2017, 4:47 PM EDT) -- The European Commission on Wednesday said it has cleared Portugal’s plan to sell a majority of rescued bank Novo Banco to private equity outfit Lone Star after it found the arrangement did not run afoul of the European Union’s state aid rules.

Lone Star is putting up €1 billion ($1.18 billion) for a 75 percent stake in the bank, which Portugal formed three years ago when it rescued Banco Espirito Santo SA with €4.9 billion, mostly in state money. Under the terms of the deal, Portugal...
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