Portugal asks for higher offers as TAP Air Portugal privatisation enters final round

Portuguese government launched final negotiation round for TAP privatisation
Air France-KLM and Lufthansa submitted bids for 44.9pc stake
Bids deemed too close in value to select single winner
Up to 49.9pc of TAP can be sold including employee stake
Strategic investor to enter joint management in 2026 with capital injection by summer 2027

The Portuguese government has launched a final round of negotiations for the privatisation of flag carrier TAP Air Portugal. Air France-KLM and Lufthansa have been asked to submit improved offers after both submitted binding bids in late July 2026 to acquire a 44.9pc minority stake.

The government chose not to select a single winner because the two proposals were deemed too close in overall value to separate. Cabinet Minister António Leitão Amaro confirmed the final round of talks will last a few weeks, during which both competitors are expected to enhance their bids. Following this phase, the government will select a single preferred bidder for exclusive final negotiations.

The current privatisation decree allows for up to 49.9pc of TAP to be sold, comprising the 44.9pc strategic stake plus a 5pc stake reserved for employees. The Portuguese state intends to maintain majority control with a 50.1pc remaining stake. The chosen strategic investor is projected to enter joint management of TAP as early as 2026, with the actual capital injection expected by the summer of 2027.

Cabinet Minister António Leitão Amaro shared: “The final round of talks will last a few weeks, during which both competitors are expected to enhance their bids.”