Lufthansa is on track to win the procedure for acquiring 44.9% of the Portuguese airline TAP, Portuguese television SIC reported, citing sources familiar with the negotiations. The German group is competing with Air France-KLM, but the decision has not yet been officially announced.
According to information cited by Reuters, Lufthansa offers to pay the purchase price entirely in cash. Air France-KLM's offer includes a combination of cash and shares in the Franco-Dutch group. SIC also indicates that the stronger financial position of the German candidate was among the factors that tipped the scales in its favor.
The Portuguese Ministry of Infrastructure has declined to comment on the information. The government is to decide the winner at an extraordinary meeting of the Council of Ministers scheduled for October 14.
Air France-KLM and Lufthansa submitted their final improved bids in September after Portuguese authorities asked both candidates to revise their proposals. The state-owned company Parpública, which manages the public participations, received the two binding offers and prepared an assessment for the government.
The procedure is part of the partial privatization of TAP, which is being restarted in 2025. The plan foresees the sale of 44.9% of the capital to a strategic investor, with up to 5% of the shares to be reserved with priority for employees.
Even if Lufthansa is selected, the sale will not be completed immediately. After the decision, the contracts between the state and the selected investor will have to be approved, and the deal will also be subject to regulatory checks, including by the European Commission.
According to ECO, the final transfer of the shares and payment to the Portuguese state are expected in 2027, once the necessary permits have been obtained. Until the official decision of the Council of Ministers, Lufthansa's advantage remains information based on sources, and not a confirmed fact by the Portuguese government.