Politics · Malaysia Bureau
Lufthansa Eyes Full Control of TAP Air Portugal After Government Deal
The German airline giant is in negotiations to acquire the Portuguese government's remaining 50.1% stake in TAP Air Portugal, following its selection as the preferred bidder to purchase up to 49.9% of the carrier for US$1.35 billion.
LSN Malaysia ·
Lufthansa's chief financial officer confirmed the company is pursuing talks to gain majority ownership of TAP Air Portugal, building on the Portuguese government's decision to award the airline a stake purchase agreement worth US$1.35 billion. The deal would represent a significant consolidation move within Europe's aviation sector, as Lufthansa seeks to expand its presence in Southern Europe and strengthen its competitive position.
Portugal's government selected Lufthansa as its preferred buyer after evaluating multiple bids for the struggling carrier, rejecting a competing proposal from Air France-KLM. The decision reflects confidence in Lufthansa's operational capabilities and strategic vision for the airline's future, which has faced financial challenges in recent years.
The acquisition would mark a major ownership restructuring for TAP Air Portugal, which has been partially state-owned. If Lufthansa successfully completes negotiations for the remaining government stake, the carrier would transition to private control under the German aviation group's umbrella, joining other European carriers in the Lufthansa portfolio.
The deal still requires regulatory approvals and completion of ongoing negotiations regarding the government's remaining shareholding. Industry analysts view the acquisition as a strategic move for Lufthansa to establish a stronger foothold at Lisbon airport and enhance connectivity across its European network.