Groupe BPCE agreed to buy Portuguese lender Novo Banco from its majority owner Lone Star for 6.4 billion euros ($7.41 billion) in the latest cross-border deal in European banking.The French retail bank on Friday said it signed a memorandum of understanding to buy the 75% stake held in the group by Dallas-based private equity group Lone Star in cash.

France’s BPCE has agreed a 6.4 billion euros ($7.39 billion) deal to acquire Portugal's Novo Banco, including a 75% stake held by U.S. private equity firm Lone Star, BPCE and Lone Star said on Friday.

Lone Star Funds owns 75% of Novo Banco, with the Portuguese government holding a 25% stake through various entities.