Portugal has selected Lufthansa as the preferred buyer for up to 49.9% of TAP Air Portugal, valuing the first phase of the transaction at €1.201 billion. The approved deal covers a 44.9% stake for Lufthansa, with up to a further 5% available if employees do not exercise their purchase rights, while the Portuguese state would retain 50.1%.
Lufthansa’s proposal was chosen over Air France-KLM after both groups submitted improved final bids. Its offer was 16% higher and was assessed by the Portuguese government as carrying less uncertainty. Lufthansa would become TAP’s strategic industrial partner, with plans focused on strengthening the airline’s competitiveness, fleet, network, connectivity and investment in Portugal.
The selection does not complete the share transfer. Contractual documentation and regulatory approvals, including European Commission competition clearance, remain necessary. The government has described the decision as the conclusion of the first phase of TAP’s privatisation.
A possible second phase could take place by July 2028. Lufthansa has proposed acquiring a majority stake for an additional €1.351 billion, comprising €863 million in cash and a share exchange equivalent to 5% of the combined Lufthansa-TAP group. The structure could make Portugal the second-largest shareholder in the enlarged entity and help the state recover part of the approximately €3.2 billion invested in TAP over the past decade, but the further transaction remains conditional.