Lufthansa Beats Air France-KLM to Seal 49.9% Stake in TAP Air Portugal
Lufthansa Group has been selected by the Portuguese Government as the successful preferred bidder for a minority investment in TAP Air Portugal.
Lufthansa's €1.2bn bid will give it 49.9% control of TAP and sees it beat Air France-KLM to the prize.
Lufthansa Group said it is pursuing a clear strategic agenda: to support TAP Air Portugal’s growth while preserving its national identity and to sustainably strengthen Portugal’s connectivity, particularly with North and Latin America.
Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, said: “TAP Air Portugal is a strong and profitable airline, our long-standing partner in Star Alliance and internationally successful as a leading carrier on South Atlantic routes. It is known for its outstanding employees and has a compelling business model. With today’s decision, the Portuguese government has paved the way for TAP Air Portugal to continue this success story together with Lufthansa Group.
"At the same time, this allows us to consistently pursue our internationalization strategy and sustainably strengthen our position in the South Atlantic market. Our company has enjoyed a close and trusted partnership with Portugal for many years. For decades, we have invested in the country, created and secured highly skilled jobs, and connected Portugal with Europe and the world. We look forward to a shared future with TAP Air Portugal and to continuing our constructive cooperation with the government in Lisbon!"
Lufthansa Group has been active in Portugal for more than 70 years. The group’s airlines currently offer 353 weekly flights to six destinations in Portugal, representing a 75% increase in capacity compared with 2019. More than 500 skilled professionals currently work for Lufthansa Group companies in Portugal. With the construction of 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 now working together with the Portuguese government and Parpública to finalise the transaction documents and expects to complete and sign the agreements for the acquisition of the stake shortly. Completion of the acquisition remains subject to approval by the relevant authorities.
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