Portugal has selected Lufthansa Group as the preferred strategic investor for TAP Air Portugal, defeating Air France-KLM in the first phase of the flag carrier’s privatisation. Lufthansa offered €1.025 billion for a 44.9% stake, with the transaction potentially reaching approximately €1.2 billion if shares reserved for employees are included. The deal would give Lufthansa executive and operational responsibility while preserving TAP’s Lisbon hub and long-haul connectivity.
Portugal’s state will initially retain 50.1% of TAP, while employees may acquire up to 5%. Any employee allocation not taken up could be purchased by Lufthansa, taking its potential holding to 49.9%. The government valued Lufthansa’s financial offer at 16% above Air France-KLM’s proposal and considered it less uncertain.
Lufthansa’s entry would place TAP alongside carriers including SWISS, Austrian Airlines and ITA Airways within the wider Lufthansa Group. The German group is expected to support TAP’s growth while maintaining its Portuguese identity and network links with North and Latin America.
The selection does not complete the transaction. Portugal and Lufthansa must finalise contractual documents, followed by approval from the relevant authorities, including European Union regulators. The process could take 18 to 24 months, with completion potentially occurring in 2028.