Lufthansa Group has been selected by Portugal as the preferred bidder for a minority stake in TAP Air Portugal, offering €1.025 billion for an initial 44.9% holding. The proposed investment would support TAP’s growth while preserving its national identity and strengthening connections between Portugal, Europe, Brazil and other Latin American markets.
The stake could increase to 49.9%, with the total value rising to as much as €1.2 billion. Up to 5% of TAP’s shares will initially be reserved for employees, while the Portuguese state is expected to retain a controlling 50.1% interest in the first phase of the privatisation.
Lufthansa’s proposal was selected ahead of a competing offer from Air France-KLM and was reported to value TAP approximately 16% higher than its rival’s bid. The transaction would expand Lufthansa Group’s presence in the South Atlantic and add TAP’s Lisbon operation to its broader multi-hub network.
Lufthansa, the Portuguese government and state holding company Parpública will now finalise the transaction documents. The preferred-bidder decision does not complete the acquisition; signing and closing remain subject to the relevant regulatory approvals. Lufthansa has also welcomed Portugal’s intention to pursue the airline’s full privatisation and indicated that a larger holding could offer additional benefits.