Portugal weighs buying up to 5% of Millennium bcp if Fosun exits, report says
Portugal weighs buying up to 5% of Millennium bcp if Fosun exits, report says LISBON, Oct 9 (Reuters) - Portugal's government is considering buying a stake of up to 5% in the country's largest listed bank Millennium bcp BCP.LS amid concerns that a potential sale of Chinese conglomerate Fosun's 0656.HK 20.45% holding could see Spanish banks buying up more of the sector, newspaper Expresso said on Friday.
Expresso, citing sources familiar with the matter, said the government sees Millennium bcp as a strategic asset and wants to curb further foreign ownership, "particularly from Spain", as Spanish banks already have a significant presence in Portugal through Santander SAN.MC, CaixaBank-owned BPI, Abanca, Bankinter and BBVA BBVA.MC.
The move would mark a fresh acquisition under the minority centre-right government of stakes in what it considers strategic assets, following its recent purchase of a 13.7% stake in power grid operator REN.
Asked about the report, Portugal's Finance Ministry, Fosun and Millennium bcp declined to comment.
In March 2024, Reuters reported that Fosun International was open to selling its remaining stake of around 20% in Millennium BCP after disposing of part of its holding earlier that year. Fosun is the largest single shareholder in Millennium bcp, followed by Angolan state oil company Sonangol with 19.9%.
In May last year, Portugal's Finance Minister Joaquim Miranda Sarmento said Spanish banks already accounted for about a third of Portugal's banking market and warned against any further expansion by Spanish lenders, citing concentration and dependence risks.
A 5% shareholding could give the government a say in major decisions affecting the bank's ownership and future direction.
Fosun has been one of the most aggressive foreign dealmakers in Portugal since mid-2014, when the country was still under an international bailout after a debt crisis.
The conglomerate also owns 85% of Portugal's largest insurance firm Fidelidade, which in turn owns the country's leading private healthcare group Luz Saude.
(Reporting by Sergio Goncalves; Editing by Susan Fenton)
((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters Messaging: sergio.goncalves.reuters.com@reuters.net/))