Details of the Lufthansa TAP Air Portugal acquisition have emerged as Portugal selects the carrier for a major reprivatisation deal.
Lufthansa TAP acquisition agreed in multi-billion euro deal
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Portugal has selected Lufthansa to acquire a 44.9 percent stake in TAP Air Portugal, marking a significant reprivatisation agreement valued at €1.201 billion (US$1.344 billion) for its initial phase.
The announcement followed a cabinet meeting on Wednesday, where Prime Minister Luís Montenegro noted that Lufthansa’s financial bid was up to 16 percent higher than the rival proposal submitted by Air France-KLM, while also presenting less uncertainty. Final bids from Lufthansa and Air France-KLM were submitted at the conclusion of September, Euronews reports.
Industry analysts indicate that TAP’s extensive network in South America, particularly its dominant position connecting Europe and Brazil, served as a primary attraction for Lufthansa, alongside potential opportunities for future expansion into Asian markets.
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Under the terms of the new arrangement, the Portuguese state will maintain a majority holding of 50.1 percent, whereas Lufthansa will assume responsibility for executive and operational management of the airline. Furthermore, 5 percent of shares have been set aside for employees, with Lufthansa permitted to acquire any portion unclaimed by staff.
The transaction remains contingent upon regulatory clearance from the European Union, and the government anticipates concluding the optional second privatisation stage by July 2028, Euronews says.
Details of the Lufthansa TAP Air Portugal acquisition
A potential second phase proposed by Lufthansa could involve the remaining state holding, bringing the total transaction value to €2.552 billion. This stage would incorporate a share exchange granting Portugal a 5 percent interest in the merged Lufthansa and TAP group.
According to Euronews, the broader investment commitment features €500 million allocated toward establishing a new pilot training school located in Tancos, an innovation centre in Aveiro, and a corporate services facility, alongside existing investment plans by Lufthansa Technik in Santa Maria da Feira.
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Montenegro highlighted that the planned expansion of TAP will support 3,000 jobs, with the wider investment initiatives projected to create 5,500 direct and indirect positions across Portugal.
Infrastructure and Housing Minister Miguel Pinto Luz stated that the airline’s fleet is projected to grow to 117 aircraft by 2035, reaching 130 thereafter. The strategy also includes transferring up to eight Airbus A350-900 aircraft to TAP following 2030.
TAP recently recorded a first-half loss of €99.2 million for 2026, representing an increase of approximately 40 percent compared to the previous year.
