Photo Credit: A TAP Air Portugal Airbus A330neo at Newark Liberty International Airport. Vincenzo Pace
Lufthansa Group has won the battle for a 44.9% stake in TAP Air Portugal, beating rival Air France-KLM in a closely watched privatization contest for the Portuguese flag carrier.
The German group will pay €1.2 billion ($1.3 billion) for the non-controlling shareholding. Prime Minister Luis Montenegro said the winning offer exceeded Air France-KLM's bid by 16%.
The decision brings to an end a tight race that saw two of Europe's largest airline groups compete for one of the continent's few remaining independent national carriers.
For Lufthansa, it marks another major step in its European consolidation strategy, following its investment in Italy's ITA Airways. It also gives the German aviation group a stronger position in the strategically important market between Europe and Brazil, where TAP has an extensive network spanning 14, and soon to be 15, cities.
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