Lufthansa Chosen to Acquire Minority Stake in TAP, Bloomberg Reports

3-line summary

• Portugal's government selected Germany's Lufthansa to acquire up to 44.9% of flag carrier TAP, with a decision confirmed at Wednesday's cabinet meeting, according to a Bloomberg report cited by Investing.com; an additional 5% stake will be reserved for employees. Deal value was not disclosed.
• Lufthansa beat rival bidder Air France-KLM after both raised their offers. TAP, which received substantial state aid during the pandemic and has undergone restructuring since, posted a €99 million (about $111 million) loss in H1 amid rising jet-fuel costs; the government said it needs the scale of a major network carrier to stay competitive, with TAP's slot holdings and transatlantic routes to South America and Africa cited as key attractions.
• Lufthansa plans to fold TAP into its existing multi-hub system alongside Swiss, Austrian, Brussels Airlines, and ITA, keeping Lisbon as a major hub and aiming to grow its share of Brazil routes. Regulatory filings and formal approval are still pending.

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