Bloomberg
• Henrique Almeida, Sonja Wind
Portugal’s Council of Ministers selected Lufthansa Group to acquire a minority stake in TAP Air Portugal, ending a privatization contest with Air France-KLM. Reports put the proposed share at 44.9% and the bid at €1.2 billion; the government said Lufthansa’s proposal was financially stronger.
TAP Air Portugal
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TAP Air Portugal’s chief executive says the Lisbon-based carrier will maintain its focus on core markets as it joins Lufthansa Group. The airline is expected to contribute flexibility alongside Lufthansa’s scale, though the report provides no details on the acquisition’s terms or timing.
Chief executive Ben Smith says Air France-KLM is already strongly positioned in the Europe–Latin America market after the group missed out on TAP Air Portugal. He hopes to secure approval for its SAS deal early next year, leaving that transaction as the next key step in the group’s expansion plans.
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Lufthansa Group has signed an agreement with Portugal’s government to acquire an initial 44.9% stake in TAP Air Portugal for €1 billion, following its successful bid. CEO Carsten Spohr said the airlines have limited network overlap, but it is too early to discuss potential antitrust remedies.
Lufthansa’s interest in TAP, Korean Air’s expansion and mounting cost pressures offer a snapshot of forces shaping the airline industry. The developments raise broader questions about consolidation, growth and the economics confronting carriers, though the available summary provides no deal terms or specific cost figures.
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Portugal’s Council of Ministers selected Lufthansa Group to acquire a minority stake in TAP Air Portugal, ending a privatization contest with Air France-KLM. Reports put the proposed share at 44.9% and the bid at €1.2 billion; the government said Lufthansa’s proposal was financially stronger.
Portugal is expected to name a buyer for a 44.9% interest in TAP Air Portugal, with Lufthansa reportedly ahead of Air France-KLM. SIC reports Lufthansa’s all-cash offer outpaces its rival’s bid; the Portuguese government’s decision was expected Wednesday.
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