Lufthansa wins bid for 49.9% of TAP
Portugal has chosen Lufthansa to buy 49.9% of TAP for €1.201 billion, a deal that would bring the flag carrier into Europe’s biggest airline group.
Portugal’s cabinet has approved the sale of 49.9% of TAP to Lufthansa for €1.201 billion, making the German group the Portuguese airline’s industrial partner. The decision will place TAP inside Europe’s largest airline group and reshape the carrier’s growth plans.
According to the terms presented by the government, Lufthansa offered €1.025 billion for 44.9% of TAP, plus €118 million linked to a 5% stake reserved for employees at the same price. The package also includes €58 million related to the sale of Cateringpor and SPdH, as well as an adjustment mechanism tied to the company’s performance, implying a total valuation of €2.407 billion for TAP.
The government said Lufthansa beat Air France-KLM, whose offer totalled €1.038 billion, with a possible additional €100 million if TAP met EBITDA and net debt targets by 2028. That uncertainty weighed on the decision. Lufthansa also pledged to expand TAP’s fleet from 101 aircraft to 117 by 2035 and to 130 after that, once Lisbon’s new airport opens, in an investment that could reach €4 billion.
Lufthansa also submitted a proposal for a second privatisation phase covering 100% of TAP’s capital. It offered €863 million for the remaining 50.1% and a 5% stake in Lufthansa valued at €488 million, which would bring TAP’s total valuation to €2.552 billion across both phases.
The deal still faces a final negotiation stage, contractual approvals and regulatory clearance, including from the European Commission. Finance Minister Joaquim Miranda Sarmento has said the process may take 18 to 24 months at EU level, meaning the transaction is expected to close only in 2028.
Originally published at Eco.pt
