Lufthansa Group and Portuguese Government Sign Agreement for Acquisition of a Minority Stake in TAP Air Portugal

The Lufthansa Group and the Portuguese government today signed the agreement for the acquisition of an initial minority stake of 44.9 percent in TAP Air Portugal at Humberto Delgado Airport in Lisbon. This marks a decisive milestone in the privatization process of TAP. Completion of the acquisition remains subject to approval by the relevant authorities, in particular the European Commission.

Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, says:

“Today's signing is an excellent signal that extends far into our shared future with TAP Air Portugal and the further development of the Lufthansa Group. Our networks complement each other ideally and open up new growth opportunities for us in Portugal and in particular in South America and Brazil. Together with TAP's employees, we want to continue the airline's success story, preserve its Portuguese identity and develop Lisbon into a Lufthansa Group hub. We are consistently pursuing our Europeanization strategy while reaffirming our long-term commitment to Portugal. I would like to thank the Portuguese government for the professionally managed privatization process and the cooperation based on mutual trust. We look forward to further deepening our partnership with Portugal and shaping the future together with TAP.”

The agreed purchase price for the initial 44.9 percent stake is 1.025 billion euros. The investment will be financed entirely from available liquidity. Through the possible acquisition of shares initially offered to employees, the stake could increase to up to 49.9 percent. Taking into account a so-called ticking fee, the total purchase price could rise to up to 1.2 billion euros.

Lufthansa Group expressly welcomes the prospect of a full privatization of TAP Air Portugal. While a minority stake already enables the realization of the majority of synergies estimated at up to 450 million euros, a majority stake offers — as experience from previous acquisitions has shown — additional opportunities to accelerate TAP's growth, strengthen its competitiveness, and unlock further potential within the airline group — to the benefit of TAP, Portugal, and Lufthansa Group.

Central to the growth plans is the expansion of TAP's route network, in particular connections between Portugal and Brazil, Portuguese-speaking Africa, and North America. For Lufthansa Group, the enhanced presence in traffic between Europe and Latin America is of particular strategic significance. Its current market share in this segment stands at approximately nine percent. Together with TAP, the combined calculated market share would be approximately 20 percent — bringing Lufthansa Group in line with its key competitors. Lisbon is set to become the seventh hub of Lufthansa Group. In addition to Lisbon, Porto, the Azores, Madeira, and the Algarve are also integral parts of the growth strategy.

Lufthansa Group has been active in Portugal for more than 70 years and is a long-standing industrial partner of the country. The Group's airlines currently offer 353 weekly flights to six destinations in Portugal — an increase of 75 percent compared with 2019. More than 500 skilled professionals currently work for Lufthansa Group companies in Portugal. With the new Lufthansa Technik site in Santa Maria da Feira near Porto, where ground was broken in June, this number is expected to increase to more than 1,000 direct jobs by 2030. Lufthansa Group is thus a long-standing industrial partner of Portugal.

Completion of the transaction will take place upon receipt of all required regulatory approvals.