Business · Companies · 20 hrs ago
Portugal selects Lufthansa to buy up to 49.9% of TAP
Portugal has chosen Lufthansa to buy up to 49.9% of TAP, its state-owned airline.
The initial sale covers 44.9%, with another 5% set aside for employees if they choose to buy it.
The government says Lufthansa’s bid is up to 16% higher than rival Air France-KLM’s and would keep TAP’s brand and headquarters in Portugal.
The plans also include strengthening Lisbon as an international hub, expanding operations in Porto and growing the fleet to 130 aircraft after 2035.
The sale aims to help Portugal recover some of the roughly €3.2 billion in public money it put into TAP over the past decade.
The agreement is not final: contracts must be signed and regulatory procedures completed.
A possible later phase could let Lufthansa take a majority stake, with the deal’s direct value rising to €2.552 billion.
Algarve’s CDS-PP party is urging the government to work with Lufthansa and regional partners to add international flights from Faro, but the sale does not guarantee new routes.
Portugal selected Lufthansa to acquire up to 49.9% of state-owned airline TAP in a deal valued at €1.201 billion.
The initial sale would give Lufthansa 44.9%, with up to 5% reserved for employees, while the state retains a majority stake.
The government said Lufthansa’s offer was up to 16% higher than Air France-KLM’s and better protected the public interest.
The plan includes keeping TAP’s brand and headquarters in Portugal, strengthening Lisbon as a hub and expanding operations in Porto.
The sale still requires contracts and regulatory approvals, and a possible second phase could allow Lufthansa to take a majority stake.
- Who
- Portugal’s government selected Lufthansa to buy a stake in TAP.
- What
- Lufthansa may acquire up to 49.9% of the airline. The initial sale is for 44.9%, with up to 5% reserved for employees.
- When
- The government approved the selection on Wednesday, and a resolution published Friday takes effect Saturday.
- Where
- Portugal; TAP is the country’s state-owned airline, with Lisbon designated as a strengthened hub.
- Why
- The government said Lufthansa’s offer best protected the public interest and was up to 16% higher than Air France-KLM’s offer.
This story does not have two clearly opposing sides.
Portugal’s Council of Ministers approved the selection of Lufthansa.
A resolution formalising the selection was published in Portugal’s official gazette.
The resolution was due to take effect.
- Maximum stake
- 49.9%
- Initial sale
- 44.9% to Lufthansa; up to 5% reserved for employees
- Deal value
- €1.201 billion
- Competing bidder
- Air France-KLM
- Potential second-phase valuation
- Up to €2.552 billion
- Public funding in TAP
- Around €3.2 billion over the past decade
5 sources
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Portugal oficializa la elección de Lufthansa para adquirir hasta el 49,9% de TAP
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Nota de Esclarecimento
What people are saying
The proposal from Lufthansa for TAP, which in the second phase could reach €2.552 billion, clearly shows the overall value attributed to the airline.
The Lufthansa proposal places the value of TAP at almost €2.6 billion.