Lufthansa Group Signs Agreement to Acquire 44.9% Stake in TAP Air Portugal for €1.025 Billion. Aviation conglomerate Lufthansa Group has finalized an agreement with the Government of Portugal to acquire an initial 44.9% stake in flag carrier TAP Air Portugal, in a transaction valued at €1.025 billion. The landmark pact represents a decisive phase in the privatization of the Portuguese airline, granting the German aviation group a strengthened foothold across Southern Europe while expanding its transatlantic footprint into South America, with an emphasis on the strategic Brazil corridor. The closing remains subject to required regulatory approvals, notably clearance from the European Commission.
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Under the terms of the transaction, Lufthansa Group holds the option to raise its equity holding to 49.9% by purchasing shares allocated for airline employees. Factoring in associated issuance fees, the total cash consideration could reach up to €1.2 billion, funded entirely from the group’s existing cash reserves. Corporate projections estimate that operational synergies stemming from TAP’s integration could generate up to €450 million, unlocking additional financial upsides should the group secure majority control over time.
A primary operational objective of the acquisition is establishing Lisbon as Lufthansa Group’s seventh network hub, scaling connections spanning Portugal, North America, Lusophone Africa, and Latin America. Currently holding roughly a 9% market share on passenger routes between Europe and Latin America, the inclusion of TAP will lift the group’s presence to approximately 20%, leveling competitive parity against major European legacy airline groups.
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Carsten Spohr, Chief Executive Officer of Deutsche Lufthansa AG, emphasized that the complementary route structures of both carriers present significant commercial opportunities. Spohr also affirmed that TAP’s national brand identity will be maintained and Lisbon will hold an integral position within the multinational hub-and-spoke system.
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