The sale of Portuguese state-rescued Novo Banco and its subsequent revamp by its new owner US private equity firm Lone Star was approved by European Union state aid regulators on October 11.

The European Commission said the restructuring would ensure the bank’s long-term viability.

As reported by the Reuters news agency, Novo Banco was carved out of Portugal’s biggest ever bank collapse in 2014 after a €4.9bn-billion rescue of Banco Espirito Santo.

“We have approved Portugal’s plans to ...

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