BPCE to acquire Novo Banco in $7.4bn deal

BY Fraser Tennant

In a deal that values Portugal’s fourth-largest lender at $7.4bn, global private equity firm Lone Star has sold its 75 percent stake in Novo Banco to French banking group BPCE.

The acquisition comes amid a wave of cross-border and domestic banking mergers in Europe, where regulators have long urged industry consolidation to better integrate the financial sector and counter growing competition from US banking giants.

The transaction is the biggest cross-border acquisition in the eurozone for more than 10 years.

By welcoming Novo Banco into the group, alongside the Banque Populaire and Caisse d’Epargne banking networks, which already serve the French economy, BPCE will further strengthen its role as an important development partner for the Portuguese economy, recognised for its solid fundamentals and resilience.

Through the transaction, BPCE intends to facilitate financing for local companies and individuals’ projects, while also expanding the range of services offered to Portuguese customers. BPCE will leverage all of its expertise to strengthen value creation in close collaboration with Novo Banco.

“This agreement marks a defining moment in Novo Banco’s journey and a powerful endorsement of the transformation we have achieved,” said Mark Bourke, chief executive of Novo Banco. “By becoming part of BPCE, Novo Banco now can access the strength and depth of one of Europe’s financial powerhouses.”

Portugal’s fourth-largest bank with 290 branches and 4200 employees, in recent years Novo Banco has become one of the most profitable banks in Europe, posting a cost-income ratio under 35 percent and a return on tangible equity exceeding 20 percent. These results have been underpinned by the quality of Novo Banco’s teams, together with the engagement of its shareholders for the last eight years.

Currently employing over 3000 staff in Portugal, the opening of a multi-business centre of expertise in Porto in 2017 has deepened BPCE’s local ties. “Novo Banco possesses excellent fundamentals, strong growth potential and an already high level of profitability,” said Nicolas Namias, chief executive of BPCE. “The financial terms of the transaction reflect a disciplined and stringent valuation approach, as well as our confidence in Novo Banco’s ability to create value over time.”

The acquisition is expected to be completed in the first half of 2026.

“This transaction enhances our ability to serve Portuguese families and businesses, deepens our commitment to the national economy, and secures a long-term future built on strength, trust and shared ambition,” concluded Mr Bourke. “It is a great moment for Novo Banco, and we now move forward with renewed confidence and clarity of purpose.”

News: France's BPCE agrees deal to buy Portugal's Novo Banco for $7.4 billion

PE-backed Marelli files for Chapter 11 bankruptcy protection

BY Richard Summerfield

Automotive parts maker Marelli, owned by private equity firm KKR, has filed for Chapter 11 in the US Bankruptcy Court for the District of Delaware.

According to a statement released by Marelli, the company filed for bankruptcy in order to comprehensively restructure its long-term debt obligations. Approximately 80 percent of the company’s lenders have signed an agreement to support the restructuring, which will deleverage Marelli’s balance sheet and strengthen its liquidity position.

Throughout the Chapter 11 process and moving forward, Marelli does not expect to experience any operational impact from the bankruptcy and will continue to work closely with its customers, suppliers and partners to innovate and invest in its portfolio of advanced technologies that will differentiate the vehicles of the future and transform mobility.

Marelli is a key supplier to both Nissan and Stellantis, providing everything from lighting and interior components to propulsion, exhaust and chassis parts.

To support the company during the Chapter 11 process, Marelli has received a significant commitment for $1.1bn in debtor-in-possession (DIP) financing from its lenders. This additional capital underscores lenders’ continued support and confidence in the company’s underlying business and its long-term potential. Upon court approval, the DIP financing, coupled with cash generated from the company’s ongoing operations, is expected to provide sufficient liquidity to support the company through the Chapter 11 process. In addition to the DIP financing, the restructuring agreement provides for a comprehensive deleveraging transaction through which the DIP lenders will take ownership of the business upon emergence from Chapter 11, subject to a 45-day overbid process.

“At Marelli, we have been proactive in making necessary adjustments to stabilize our financial position so that we can continue to deliver long-term benefits for our valued customers, partners and employees,” said David Slump, president and chief executive of Marelli. “While we are pleased with our recent progress and profitability, industry-wide market pressures have created a gap in working capital that must be addressed. After careful review of the Company’s strategic alternatives, we have determined that entering the chapter 11 process is the best path to strengthen Marelli’s balance sheet by converting debt to equity, while ensuring we continue operating as usual. Taking this action now provides access to new liquidity to fund our long-term growth and innovation pipeline, and ensures our customers and partners all over the world can continue to rely on Marelli for on-time delivery of advanced technologies that shape the vehicles of the future.

“Marelli’s focus on innovation, digitalization and technology has never been stronger,” he continued. “As we move through this process, we will continue to serve our customers and work with our suppliers and partners as they have come to expect. We are also grateful for the hard work and dedication of our employees who remain focused on delivering the best service possible.”

News: Nissan supplier Marelli files for Chapter 11, secures $1.1 billion in new financing

Solar Mosaic files for Chapter 11 to restructure and recapitalise

BY Fraser Tennant

Amid rising interest rates, legislative uncertainty and a fragmented capital market, Solar Mosaic, a FinTech platform for sustainable home improvements, has filed for Chapter 11 bankruptcy. 

The filing will allow Mosaic to complete a restructuring and recapitalisation supported by a number of its existing lenders, while simultaneously conducting a comprehensive marketing process of its platform and other assets.

With macroeconomic challenges facing the entire residential solar industry, Mosaic determined – in consultation with its board of directors and advisers – that a court-supervised process was the best way to maintain its loan servicing platform, effectuate a full sale and marketing process for its assets, and maximise value for its stakeholders.

“This marks a significant step for Mosaic to address our financial position amid the macroeconomic challenges facing the residential solar industry, as well as the recent legislation passed by the House of Representatives that rolls back residential solar tax credits,” said Patrick Moore, chief executive of Solar Mosaic.

Throughout the process, Mosaic expects to remain fully operational without disruption, committed to working with its network of installers, investors and capital markets partners, and customers. It also plans to maintain its loan servicing operation, ensuring customers can continue to pay their loans as planned and collections are remitted to loan owners.

To that end, Mosaic will receive $45m in debtor-in-possession financing from its existing lenders, including $15m in new money financing which, following court approval, is expected to fund the company’s ongoing operations and administrative expenses during the Chapter 11 cases.

Mosaic has also filed a number of customary motions with the bankruptcy court to ensure that its operations continue as usual during the Chapter 11 process. This includes motions requesting court authority to pay employee wages and benefits, compensate certain vendors and suppliers on a go-forward basis, and facilitate the completion of partially finished installation projects.

Founded in 2010, Mosaic is a pioneer in clean energy lending, providing innovative solutions for financing solar, battery storage and more. The company has funded $15bn in loans to date, helping more than 500,000 households make their homes more sustainable and efficient.

Mr Moore concluded: “Throughout the Chapter 11 process, we remain focused on maintaining stability for our customers, business partners and employees.”

News: Warburg Pincus-Backed Solar Mosaic Files for Bankruptcy

Sanofi acquires Blueprint Medicines in $9.5bn deal

BY Fraser Tennant

In a deal that expands its portfolio in rare immunological disease and adds to its early-stage pipeline in immunology, French multinational drugmaker Sanofi is to acquire US-based, publicly traded biopharmaceutical company Blueprint Medicines.

Under the terms of the acquisition, Sanofi will pay $129 per share in cash at closing, representing an equity value of approximately $9.1bn. Sanofi plans to finance the transaction with a combination of cash on hand and proceeds from new debt.

In addition, Blueprint’s shareholders will receive one non-tradeable contingent value right (CVR) per Blueprint share with two potential milestone payments. In addition, Blueprint’s shareholders will receive one non-tradeable CVR per Blueprint share with two potential milestone payments for future development and regulatory milestones for Blueprint medicine BLU-808.

“The acquisition of Blueprint Medicines enhances our pipeline and accelerates our transformation into the world’s leading immunology company,” said Paul Hudson, chief executive of Sanofi. “This acquisition is fully aligned with our strategic intent to strengthen our existing therapeutic areas, to bring relevant and differentiated medicines to patients and to secure attractive returns to our shareholders.”

The acquisition also includes a rare immunology disease medicine, Ayvakit, approved in the US and the European Union, and a promising advanced and early-stage immunology pipeline. Ayvakit is the only approved medicine for advanced and indolent systemic mastocytosis – a rare immunology disease characterised by the accumulation and activation of aberrant mast cells in bone marrow, skin, the gastrointestinal tract and other organs.

“Since our founding, Blueprint Medicines has worked at the intersection of scientific innovation and operational excellence,” said Kate Haviland, chief executive of Blueprint Medicines. “We have translated our unique scientific understanding of mast cell biology into a portfolio of important therapies including Ayvakit – the first and only medicine approved to treat the root cause of systemic mastocytosis.”

Blueprint’s established presence among allergists, dermatologists and immunologists is expected to enhance Sanofi’s growing immunology pipeline.

The transaction is expected to be completed in the third quarter of 2025.

“We are excited to welcome Blueprint’s talented people and we look forward to chasing the miracles of science together,” concluded Mt Hudson. “This acquisition makes sense for science, for both companies, for healthcare professionals and – most of all – for patients.”

News: Sanofi to buy US biopharma group Blueprint for up to $9.5 billion

EOG Resources to acquire Encino for $5.6bn

BY Richard Summerfield

Shale producer EOG Resources has agreed to acquire Encino Acquisition Partners (EAP) from the Canada Pension Plan Investment Board (CPP) and Encino Energy in a deal worth $5.6bn, inclusive of EAP’s net debt.

The deal, which is expected to close in the second half of 2025, and which is subject to clearance under the Hart-Scott-Rodino Act and other customary closing conditions, will be funded through $3.5bn of debt and $2.1bn of cash on hand.

The deal will greatly expand EOG’s existing Utica Shale Basin footprint and add a sizeable wedge of oil, gas and liquids-rich production.

EAP was established in 2017 by Encino Energy and CPP to acquire high-quality oil & gas assets with an established base of production in mature basins across the lower 48 states in the US. Since 2017 CPP Investments has held a 98 percent ownership position in the company alongside Encino Energy. Encino Energy will also be exiting from EAP, representing a full sale to EOG Resources.

“This acquisition combines large, premier acreage positions in the Utica, creating a third foundational play for EOG alongside our Delaware Basin and Eagle Ford assets,” said Ezra Y. Yacob, chairman and chief executive of EOG. “Encino’s acreage improves the quality and depth of our Utica position, expanding EOG’s multi-basin portfolio to more than 12 billion barrels of oil equivalent net resource. We are excited to execute on this unique opportunity that is immediately accretive to our per share metrics and meets our strict criteria for acquisitions - high quality acreage with exploration upside, competitive with our current inventory, gained at an attractive price.

“Our ability to execute on the Encino acquisition without diluting our shareholders will be a textbook example of how EOG utilizes its industry leading balance sheet to take advantage of counter cyclical opportunities to enhance the returns of our business and create long-term value for our shareholders,” he added.

“When we established Encino Acquisition Partners with Encino Energy in 2017 we envisioned creating a company that would be a leader in acquiring U.S. oil and gas assets,” said Bill Rogers, head of sustainable energies at CPP Investments. “Since then, it has done just that, and we are pleased with EAP’s success and the strong returns this investment has delivered. The acquisition of Encino’s 675,000 net core acres increases EOG’s Utica position to a combined 1.1 million net acres, representing more than 2 billion barrels of oil equivalent of undeveloped net resources, with pro forma production totalling 275,000 barrels of oil equivalent per day (boepd).”

EOG said that the acquisition significantly expands its contiguous liquids-rich acreage, adds premium-priced gas exposure and increases working interest. The company averages 65 percent liquids production, with 235,000 net acres for a combined contiguous position of 485,000 net acres.

News: Shale producer EOG boosts Utica footprint with $5.6 billion Encino deal