Lufthansa Group chosen to take over Tap Air Portugal, sale may run to 2028
Portugal's government picked Lufthansa Group over Air France-KLM for the sale of a majority stake in Tap Air Portugal. Contract talks and an EU competition review still lie ahead, with completion possibly only in 2028.
Portugal has picked Lufthansa Group to buy a stake in Tap Air Portugal, beating Air France-KLM. Prime Minister Luís Montenegro announced the decision on Wednesday, 14 October, after a special meeting of the council of ministers in Lisbon. The government said the German group's offer was 16 percent higher than its rival's.
The first phase of the deal brings the Portuguese state 1.201 billion euros, and the state keeps a 50.1 percent majority for now. The transaction is not yet final. Tap board chairman Carlos Oliveira said in a message from the airline that important stages remain.
The government is working out the sale contracts with Lufthansa Group. Regulators must then approve, above all the European Commission. Finance minister Joaquim Miranda Sarmento expects the Brussels competition review to take 18 to 24 months, putting official completion of the sale only in 2028. As a result, the proceeds from the privatisation do not appear in budget planning for 2027.
It is still open whether Lufthansa Group will have a say before then. Infrastructure minister Miguel Pinto Luz held out the prospect in June that the buyer could help steer Tap as early as 2026.
Sources
- aerotelegraph.comWie es mit Tap nach der Lufthansa Zusage weitergeht