Portugal signs contract for partial TAP sale to Lufthansa

Portugal’s government has signed a contract with Lufthansa for the partial privatization of TAP, setting out terms for a transaction announced in October. The state will keep a 51% holding for now, along with control of the airline’s board.

Lufthansa’s offer included €1.201 billion for up to 49.9% of TAP’s capital, with preferential allocation of 5% to workers. The government selected the German group on October 14 and expects the transaction to close by early 2028.

Closing the sale and bringing TAP into the Lufthansa group remain subject to an assessment by Brussels. The government expects European approval during the first half of 2028. Pending that decision, TAP will operate independently under oversight from the German group.

At the signing ceremony near Lisbon airport, Portuguese Prime Minister Luís Montenegro said the agreement protected TAP’s brand and identity, workers’ interests and its connections with Portuguese-speaking countries and communities abroad. Lufthansa Chief Executive Carsten Spohr also said TAP would remain Portuguese.

Spohr said Lufthansa still intends to make Lisbon one of its hubs while maintaining the airline’s distinctive characteristics. He also identified Porto, Funchal, Madeira and the Algarve as important to the group’s strategy, and said the deal would provide access to markets in Africa and Latin America, particularly Brazil.