Lufthansa signs its entry into TAP Air Portugal, Handelsblatt reports
Essential Business, citing Lusa, puts the deal at €1.201bn, with the Portuguese state keeping 50.1% of the airline.
Lufthansa and the Portuguese government have signed Lufthansa's entry into TAP, turning the partial privatisation it won on October 14 into a binding commitment. Handelsblatt reports that the stake is expected to pay off quickly, with a focus on connections to Latin America.
Essential Business, citing Lusa, reports a deal worth €1.201bn in which Lufthansa takes 44.9% of TAP. It can buy shares that TAP employees do not take up, to a maximum of 49.9%. The Portuguese state keeps 50.1%.
Ownership is only part of it. The Portuguese government said on October 14 that Lufthansa will be responsible for TAP's executive and operational management.
A larger step may follow. The Portugal News, citing SIC Notícias, reports that Lufthansa has also bid for the other 50.1% of TAP, offering €863m in cash and €488m in Lufthansa shares, which values TAP at €2.552bn. That second phase is not agreed.
Ryanair's chief executive said on October 20 that Lufthansa's acquisition of TAP will raise fares. That view now applies to a signed deal rather than a pending one.
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