Politics · Malaysia Bureau
Lufthansa secures majority stake in TAP Air Portugal for US$1.14bn
The German airline group has won a competitive bidding process to acquire a 44.9% stake in Portugal's flagship carrier, edging out rival Air France-KLM with its US$1.14 billion offer.
LSN Malaysia ·
Lufthansa has successfully secured a controlling stake in TAP Air Portugal following a competitive auction process, marking a significant strategic expansion in Southern Europe for the German aviation group.
The airline will acquire 44.9% of TAP, the Portuguese national carrier, for approximately US$1.14 billion. The bid outpaced competing offers from Air France-KLM, which had also sought to acquire a major shareholding in the Lisbon-based airline.
The acquisition represents a key strategic move for Lufthansa as it seeks to strengthen its presence across European markets and consolidate its network of partner airlines. TAP Air Portugal operates an extensive network connecting Europe with Brazil and other Atlantic destinations, complementing Lufthansa's existing route portfolio.
The Portuguese government, which currently holds a majority stake in TAP, has been seeking foreign investment to stabilize the airline following pandemic-related challenges. The transaction is expected to undergo regulatory scrutiny before completion.
Lufthansa operates one of Europe's largest airline networks through its subsidiaries including Swiss International Air Lines and Austrian Airlines, in addition to its main carrier operations.