The Portuguese Government has selected German airline group Lufthansa for the partial privatisation of TAP Air Portugal, following a proposal worth €1.201 billion for a stake of up to 49.9% in the national carrier.
The Government announced the decision today, 14 October, with the transaction expected to be completed by early 2028.
The proposed investment would give Lufthansa a significant shareholding in TAP, while leaving a majority of the airline’s capital outside the stake being sold.
What happens next?
The selection of Lufthansa marks an important stage in the privatisation process, although the transaction has not yet been completed.
The Government’s timetable provides for the operation to be finalised by the beginning of 2028, leaving time for the remaining steps before the proposed acquisition can be concluded.
The €1.201 billion offer covers up to 49.9% of TAP’s capital, meaning the final shareholding will depend on the terms of the completed transaction.
What could the deal mean for TAP?
The proposed acquisition would establish a major ownership link between TAP and Lufthansa, one of Europe’s largest airline groups.
For TAP, the transaction would represent a significant change in its shareholder structure, with potential implications for its future commercial strategy and development.
However, the Government’s announcement does not yet establish what operational changes, if any, would follow the investment.
Further details about the terms of the agreement and the airline’s future strategy are expected to become clearer as the privatisation process progresses.
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Editorial update:
Under the proposed deal, Lufthansa would initially acquire a 44.9% stake in TAP, with a further 5% of the airline’s capital reserved for employees. The Portuguese Government would retain a majority shareholding at this stage, although it has indicated that a subsequent phase of privatisation could take place, potentially involving a share exchange with the German airline group.