Lufthansa will purchase a 44.9% stake in TAP Air Portugal in a Portuguese government-valued €1.2 billion ($1.3 billion) transaction, with the deal requiring European Union regulatory approval.
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Lufthansa will buy a 44.9% stake in TAP Air Portugal for a deal valued by the Portuguese government at €1.2 billion ($1.3 billion), officials announced Wednesday.
Portuguese Prime Minister Luis Montenegro said Lufthansa Group won the bid, outbidding Air France-KLM, the only other company in the race.
The government said it set aside 5% of the company for more than 9,000 employees to purchase shares, while the government would remain the main shareholder after the sale.
Montenegro said the government may be able to complete TAP’s full privatization by 2028, though the partial deal is not yet final.
The transaction still requires approval by European Union regulators.
TAP says it carried 16.7 million passengers last year. The airline’s fleet includes more than 90 aircraft serving over 90 destinations, with 52 in Europe, 16 in Central and South America, 14 in Africa and 11 in North America.
TAP reported a net profit of €4.1 million ($4.6 million) last year, according to its published accounts.
The Portuguese government previously attempted to sell stakes in TAP in 1998 and 2015, but both efforts failed, with the airline returning to Portuguese state ownership after governments took control again.
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