Lufthansa wants 19.9% ​​stake in TAP Air Portugal

Take Skift

The German aviation group wants to avoid acquiring a controlling stake in TAP because it does not require the approval of the European Union’s antitrust authorities.

Meghna Maharishi

Lufthansa is considering taking a 19.9% ​​stake in TAP Air Portugal, according to Italian newspaper Corriere della Sera, which cited two Portuguese institutional sources. The company’s CEO, Carsten Spohr, plans to travel to Lisbon this week to talk to government officials, the report said.

Portugal began the sale process last September and said it wanted to sell a 51% stake. It said it wanted an investor who would develop TAP and its Lisbon hub, guarantee jobs and provide additional flights to the country’s secondary airports, including Porto.

According to the report, Lufthansa wants to avoid buying a controlling stake in TAP to avoid having to obtain approval from the European Commission.

Lufthansa, Air France-KLM and International Airlines Group — owner of British Airways, Iberia and other airlines — have all previously expressed interest in TAP. The Portuguese carrier was an attractive takeover target, partly because its Lisbon hub is ideal for connections between Europe and Latin America, as well as to Africa.

The German airline group recently received approval from the European Commission to acquire a 41% stake in ITA Airways. The European Commission said at the time that ITA’s long-term viability “would remain uncertain without the transaction.”

Lufthansa is not expected to make a takeover offer for TAP before early 2025. The 19.9% ​​stake in TAP could be worth between 180 million euros ($199 million) and 200 million euros ($221 million), according to the report.

Lufthansa did not immediately respond to a request for comment.