Portugal has extended the TAP privatisation process until 31 December 2026, allowing the government to hold a final three-week negotiation phase with Air France-KLM and Lufthansa.
Both groups submitted binding offers in July for a 44.9% stake in TAP. The government considers their overall valuations sufficiently close to justify asking both bidders for improved and final binding proposals before selecting one for exclusive negotiations.
The assessment will extend beyond the purchase price to include investment commitments, fleet development, maintenance activities, sustainable aviation fuel and employment guarantees. The government also wants to preserve TAP’s brand, Portuguese headquarters and strategically important routes.
The privatisation covers up to 49.9% of TAP, including 5% reserved for employees. Any employee shares left unsubscribed may be acquired by the selected investor. Once a preferred bidder is chosen, the transaction will still require cabinet approval and clearance from European competition authorities.