Lufthansa Group reportedly wins race to acquire TAP Air Portugal

Lufthansa Group has reportedly won the contest to take a stake in TAP Air Portugal, according to a Portuguese media report cited by broadcaster SIC. The government is expected to announce the buyer on Wednesday, 14 October.

The two groups were the last remaining candidates in the privatisation process. Air France-KLM and Lufthansa submitted their final, improved offers on 30 September, which closed the negotiation phase.

Financial considerations are said to have been decisive. Lufthansa Group offered to pay the entire price in cash, while Air France-KLM proposed paying at least part of the amount in shares in its own group. The German group's financial strength was also judged greater, according to the report. Lufthansa Group additionally wants the new Lisbon airport built as quickly as possible while the existing airport is expanded at the same time, which the report said fits the government's plans to boost airport capacity in Lisbon.

The decision would go against critical voices, including Portugal's pilot union, which had argued that Lufthansa Group practises what it called unethical, anti-union methods. If those were introduced at TAP, the union said, they would seriously endanger social peace at the workplace and the efficiency of the Lisbon hub.

TAP Air Portugal is the country's national airline. The outcome of the process has not been officially confirmed by the government or the companies involved.