Lufthansa is set to win the bidding for a 44.9% stake in TAP Air Portugal, reportedly edging out Air France-KLM in the competition to become the Portuguese flag carrier’s strategic partner. Portugal’s government was due to select its preferred bidder at an extraordinary cabinet meeting on Wednesday, although the reported outcome had not been formally confirmed and would not immediately complete the transaction.
The German group is understood to have offered the entire purchase price in cash, while Air France-KLM proposed a combination of cash and shares in the Franco-Dutch group. Lufthansa’s stronger financial position was also reportedly seen as an advantage. Both groups submitted improved final bids on 30 September after the government judged their earlier proposals too close to select a winner.
The sale covers a minority holding, with the Portuguese state retaining control and 5% reserved for employees. The selected investor could potentially acquire any shares not taken up by staff, subject to the terms of the process. Further negotiations and regulatory approvals, including European Commission competition clearance, would still be required before the deal could close.
Lufthansa’s selection would give it a substantial position in Lisbon and strengthen its reach in the Atlantic market. Air France-KLM would lose the opportunity to use TAP to expand its presence and develop Lisbon as a southern European hub.