Overview
Air France-KLM has communicated to the Portuguese government that it is prepared to allocate shares in its own group as part of a transaction to acquire a minority stake in TAP SA. The proposal is intended to give Portugal a direct influence within Air France‑KLM, thereby providing a strategic advantage over the rival offer from Deutsche Lufthansa AG, which does not contain a similar equity component.
Bid Details
The airline group indicated that the arrangement would allow Portugal to hold an equity position in Air France‑KLM, while Air France‑KLM would seek to secure control of TAP. The company emphasized that any transaction must align with its risk profile and be financially viable.
Competitive Context
Both Air France‑KLM and Lufthansa have submitted bids that extend beyond price considerations. Air France‑KLM highlighted its commitment to protecting the TAP brand, maintaining Lisbon as a hub, and potentially expanding its activities in Portugal. Lufthansa’s bid, by contrast, does not propose any share‑holding for the Portuguese state.
Additional Strategic Moves
Air France‑KLM also expects to take control of Scandinavian airline SAS AB by the end of the year, further consolidating its presence in the European aviation market.
Portuguese Sale Plan
The Portuguese government is conducting a new round of negotiations with the two airline groups and intends to divest up to 49.9% of TAP. The plan allocates 44.9% of the stake to a strategic investor and up to 5% to TAP employees. The authorities have indicated that the two offers are close in overall value and that a decision on the preferred bidder is expected in the coming weeks.
Conditions
Air France‑KLM stated it will only pursue the deal if it fits within its defined risk parameters and demonstrates financial viability, though no specific monetary figures or valuation multiples were disclosed.