Lufthansa Group and Portuguese Government Sign Agreement for Acquisition of a Minority Stake in TAP Air Portugal

Lufthansa Group signed an agreement to acquire an initial 44.9% stake in TAP Air Portugal. The acquisition marks a key milestone in TAP's privatization process. Completion remains subject to regulatory approvals, including approval from the European Commission.

Financial Details
- Agreed purchase price: €1.025 billion.
- Lufthansa's stake could increase to 49.9% through employee share acquisitions.
- Total consideration could rise to €1.2 billion including a potential ticking fee.

Strategic Benefits
- TAP strengthens Lufthansa's presence in:
- Brazil
- Portuguese-speaking Africa
- North America
- Combined market share on Europe-Latin America routes would increase from around 9% to 20%.

Growth Plans
- Lisbon will become Lufthansa Group's 7th hub.
- Focus on expanding TAP's route network and international connectivity.
- Additional growth opportunities identified in:
- Porto
- Azores
- Madeira
- Algarve

Synergy Potential
- Expected synergies of up to €450 million even with a minority stake.
- A future majority stake could unlock further growth and efficiency opportunities.

Commitment to Portugal
- Lufthansa will preserve TAP's Portuguese identity.
- Lufthansa Group has operated in Portugal for over 70 years.
- Plans to increase its workforce in Portugal to more than 1,000 direct jobs by 2030.

CEO Comment
- CEO Carsten Spohr described the agreement as a significant step for Lufthansa's European growth strategy and a long-term commitment to Portugal and TAP.