Lufthansa is poised to beat Air France-KLM in the race to acquire a 44.9% stake in Portugal’s flag carrier, TAP Air Portugal, with its all-cash offer and stronger financial position reportedly giving the German airline an advantage.
Portuguese broadcaster SIC reported on Tuesday, citing sources familiar with the matter, that Lufthansa had emerged as the frontrunner ahead of a government decision on the sale.
The Portuguese government was expected to select the preferred bidder at an extraordinary cabinet meeting on Wednesday, October 14, following a competitive process involving the two European airline groups.
Lufthansa and Air France-KLM submitted their final bids in September after Portugal’s government asked both companies to improve their offers.
According to SIC, Lufthansa’s proposal is structured as an all-cash transaction, while Air France-KLM’s offer combines cash with shares in the Franco-Dutch airline.
The proposed sale forms part of Portugal’s efforts to bring private investment into TAP while retaining a stake in the national airline. A successful bid would give the winning group an opportunity to strengthen its presence in the Portuguese market and expand its position within European aviation.
Portugal’s Infrastructure Ministry declined to comment on the reported development, according to Reuters.
