Lufthansa is expected to win Portugal’s competition for a 44.9% stake in TAP Air Portugal, ahead of Air France-KLM, in a decision due from the Council of Ministers on Wednesday. The German group reportedly offered an all-cash transaction, while its rival combined cash with shares. The award would give Lufthansa a strategic minority position in Portugal’s flag carrier, although the sale would not close immediately.
Both groups submitted binding bids in July 2026 and improved them in late September after the government judged the initial proposals too close. The final offers were reportedly worth more than €1 billion for the stake, implying a TAP valuation above €2 billion, although exact amounts have not been disclosed. Lufthansa’s financial strength and greater investment capacity were also understood to have favoured its proposal.
The Portuguese state would retain 50.1% of TAP, while 5% is reserved preferentially for employees. Following the government’s selection, Portugal would enter final negotiations with the preferred bidder before seeking regulatory clearance, including approval from the European Commission’s competition authorities. The review process could take 18 to 24 months, with completion expected in 2028. The reported outcome remained subject to formal confirmation by the Portuguese government.