Lufthansa Acquires Stake in TAP Air Portugal for $1.3 Billion
German airline secures 44.9% ownership in the Portuguese carrier, pending regulatory approval.
Lufthansa is set to acquire a 44.9% stake in TAP Air Portugal, the Portuguese flag carrier, in a transaction valued at 1.2 billion euros ($1.3 billion), officials announced Wednesday. The German airline emerged as the winning bidder, surpassing Air France-KLM, which was the only other contender.
The Portuguese government, which will retain majority ownership, has allocated 5% of the company's shares for its more than 9,000 employees to purchase. The completion of TAP's full privatization is anticipated by 2028, according to Prime Minister Luis Montenegro.
TAP Air Portugal reported carrying 16.7 million passengers last year. The airline operates a fleet of over 90 aircraft, serving more than 90 destinations, including 52 in Europe, 16 in Central and South America, 14 in Africa, and 11 in North America. Its routes to Brazil are considered particularly valuable, according to industry analysts. In the past year, TAP recorded a net profit of 4.1 million euros ($4.6 million).
This deal marks the third attempt to privatize TAP, following previous failed efforts in 1998 and 2015, after which the airline reverted to Portuguese state ownership. The acquisition is subject to approval from European Union regulators.