Business · Companies · 6 hrs ago
Lufthansa and Portugal sign deal for stake in TAP
Lufthansa and Portugal have signed an agreement for the German airline to buy part of TAP, Portugal’s state-owned airline.
The deal covers an initial 44.9% stake for €1.025 billion, with up to another 5% potentially going to Lufthansa.
TAP employees have first claim on that extra stake, while Portugal will initially keep just over 50% and remain the majority owner.
Lufthansa won the deal in October, beating Air France-KLM, and the agreement is part of TAP’s privatisation.
Lufthansa says TAP’s routes could strengthen its network, particularly in South America and Brazil, but no new routes or lower fares are promised.
The investment still needs approval from competition authorities before it can proceed.
Lufthansa has signed an agreement with Portugal’s government to buy an initial 44.9% stake in state-owned airline TAP, with the option to acquire up to 49.9%.
The initial purchase price is €1.025 billion, rising to about €1.2 billion if Lufthansa acquires shares reserved for TAP employees.
The Portuguese state will initially retain just over 50% and remain TAP’s controlling shareholder.
Portugal chose Lufthansa over Air France-KLM for the stake on 14 October.
The deal requires regulatory approval and could link the airlines’ networks, including routes between Brazil and Europe.
- Who
- Lufthansa and the Portuguese government agreed on the stake in TAP. The Portuguese state will remain the controlling shareholder.
- What
- Lufthansa will initially buy 44.9% of TAP, with the possibility of acquiring up to 49.9%.
- When
- The agreement was signed by 3 November 2026. Portugal announced its choice of Lufthansa on 14 October.
- Where
- Portugal; the deal concerns the Portuguese airline TAP.
- Why
- Lufthansa said the airlines’ networks complement each other and offer growth opportunities, particularly in South America and Brazil.
This story does not have two clearly opposing sides.
Portugal announced that Lufthansa had been chosen for a minority stake in TAP.
Lufthansa and Portugal’s government had signed the agreement for the stake.
- Initial stake
- 44.9%
- Maximum stake
- 49.9%
- Initial purchase price
- €1.025 billion
- Possible total purchase price
- About €1.2 billion
- Portugal’s share
- Just over 50% initially
- Other bidder
- Air France-KLM
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What people are saying
Our networks complement each other ideally and open up new growth prospects for us, especially in South America and Brazil, in addition to Portugal.