China Minsheng Financial Holding is competing against U.S. private equity funds Apollo Global Management LLC and Centerbridge Partners LP and private equity firm Lone Star Funds to buy Portugal's Novo Banco SA, Reuters reported Dec. 13, citing four sources.

The Chinese investor reportedly wants to buy a majority stake in Novo Banco before launching an IPO for the rest.

The Portuguese government abandoned a plan to sell the bank in 2015 because it considered bids to be too low.

Portuguese banks Millennium BCP and Banco BPI SA, which had previously been reported to be interested in Novo Banco, were still in the race but less interested than other bidders, one of Reuters' sources said.