Lufthansa poised to win bid for stake in Portugal's TAP, SIC reports

• Lufthansa is offering an all-cash deal for the 44.9% stake, while Air France-KLM's proposal combines cash and equity
• Lufthansa's stronger financial position was a key factor in the decision, according to sources
• Both airlines submitted final bids after Portugal's government requested improved offers, with the winner to be chosen at Wednesday's cabinet meeting

Summary: Lufthansa Poised to Win TAP Air Portugal Stake

Key Development: Germany's Lufthansa is reportedly set to win the bidding process for a 44.9% stake in Portugal's flag carrier TAP Air Portugal, defeating rival Air France-KLM, according to broadcaster SIC citing informed sources.

Deal Structure: Lufthansa's competitive advantage stems from offering an all-cash proposal, contrasting with Air France-KLM's bid that combines cash and equity. The German carrier's superior financial position was also cited as a critical factor in the decision.

Timeline and Process: Both airlines submitted final bids for the stake in September after Portugal's government requested improved offers from both parties. The Portuguese government is scheduled to announce the winning bidder at an extraordinary cabinet meeting on Wednesday, October 14.

Stake Details: The transaction involves a 44.9% ownership stake in TAP, Portugal's national airline, representing a significant consolidation move in the European aviation sector.

Official Response: Portugal's Infrastructure Ministry declined to comment on the reported outcome ahead of the official announcement.

Market Implications: This acquisition would strengthen Lufthansa's position in the Iberian market and expand its European network footprint. The deal represents continued consolidation in the European airline industry as carriers seek scale advantages and network synergies. For TAP, Lufthansa's financial strength could provide stability and investment capacity for fleet modernization and route expansion. The all-cash structure also provides immediate liquidity to the Portuguese government, which has been seeking to privatize the stake.

The official confirmation is expected within 24 hours.