The Portuguese Prime Minister Luis Montenegro announced on Wednesday that Lufthansa has successfully secured a stake in the Portuguese airline TAP. For a total of €1.2 billion, the German aviation conglomerate will acquire a 44.9 percent share of the shares from the Portuguese government.
This decision followed a competitive bidding process between Lufthansa and Air France-KLM. According to Montenegro, Lufthansa convinced the authorities with an offer that was 16 percent higher than that of the competing airline.
TAP had been nationalized during the Covid-19 pandemic, a period when many airlines received government support. Going forward, TAP is expected to play a significant role within the Lufthansa Group’s route network, particularly regarding connections to Brazil from the Lissabon hub.
While the deal is set, it still requires approval from regulatory and competition authorities. Sources suggest that the finalization of the agreement is not anticipated until 2028.
