Lufthansa Group and the Portuguese government signed an agreement in Lisbon on 3 November for the German group to acquire an initial 44.9% stake in TAP Air Portugal for €1.025 billion. Lufthansa could buy a further 5% of shares initially offered to TAP employees, lifting its holding to 49.9%. Including a ticking fee, the total cost could reach €1.2 billion. The deal advances TAP’s privatisation but remains subject to regulatory approval, particularly from the European Commission.
Portugal’s state will retain a majority stake for now. No completion date has been set, and the agreement does not itself complete the acquisition.
Lufthansa’s stated plans include expanding TAP’s links between Portugal and Brazil, Portuguese-speaking Africa and North America. The group also sees stronger Europe–Latin America connections as a strategic objective and has identified Lisbon as a potential seventh hub in its network.
Lufthansa estimates that the integration could generate synergies of up to €450 million, most of which it expects to achieve even with a minority stake. That figure is the group’s estimate; the actual savings will depend on the transaction’s completion and subsequent integration.