Lufthansa Group has won the race for a minority stake in TAP Air Portugal, with Portugal’s government selecting its bid of up to €1.2 billion over a rival offer from Air France-KLM.
The government said on Wednesday it had accepted Lufthansa’s offer for a 44.9% stake in the state-owned airline. A further 5% stake has been reserved for TAP employees, leaving the government with a 50.1% majority holding. Lufthansa will initially pay €1.025 billion for its stake, with the total investment potentially rising to €1.2 billion for a 49.9% shareholding, depending on how many employees take up the share offer.
Air France-KLM had offered €1.04 billion for the minority stake, with a further €100 million payable if TAP met several financial targets by 2028. Both airline groups submitted improved bids earlier this month as they competed to secure a foothold in TAP, which is considered an attractive acquisition target because of its extensive network linking Lisbon with Brazil and other South Atlantic markets.
Lufthansa Chief Executive Carsten Spohr welcomed the Portuguese government’s decision, describing TAP as a strong and profitable airline, a longstanding Star Alliance partner and a leading carrier on South Atlantic routes.The decision would allow TAP to continue its growth alongside Lufthansa while supporting the German group’s international expansion strategy and strengthening its position in the South Atlantic market, Spohr said.
The deal marks another step in the consolidation of Europe’s airline industry, as major carriers seek to expand their international reach and strengthen their positions in key markets. Lufthansa acquired a 41% stake in Italian airline ITA Airways in 2025, with its holding expected to rise to 90% in 2027. The group has also secured a 10% stake in Latvian carrier airBaltic.
