Lisbon, April 23, 2026 (Lusa) – Infrastructure Minister Miguel Pinto Luz said on Thursday that proposals from Air France-KLM and Lufthansa to purchase TAP were "practically equivalent" and that financial valuation would be "absolutely central."

The government approved a resolution inviting both companies to submit binding offers to purchase the Portuguese carrier. 

At the end of the cabinet meeting, Miguel Pinto Luz said that the two candidates had "two very close, practically equivalent, very ambitious industrial plans, closely aligned with the tender requirements and the strategic requirements imposed by the government."

The government will apply "even finer criteria" during the next phase of the TAP privatisation process regarding the targets defined for the sale, he said, adding that the "financial valuation criterion will be absolutely central" thereafter.

Confidentiality obligations prevent the government from disclosing the amounts proposed by the two companies in the first phase, but he said, "The two proposals are practically equivalent in the financial aspect." This situation leaves the government generally comfortable, suggesting the airline is being well-valued from its perspective.

He identified the strategic, industrial, and financial areas as the relevant factors for the sale.

The two European companies submitted non-binding proposals during the first phase, and they must now deliver a binding proposal within 90 days. 

This second stage requires them to indicate a financial offer and "other financial valuation proposals", along with "information on obtaining financial means" and technical proposals, including the "strategic industrial plan" and the companies' vision for synergies, he said.

Both bidders will have access to internal information about the Portuguese carrier, he said.

The strategic medium- and long-term value of TAP remains unaffected by the war in Iran, Finance Minister Joaquim Miranda Sarmento said at a press conference following the cabinet meeting, adding that the government remains vigilant regarding the aviation sector and the wider economy.

"Both competitors view TAP from a medium and long-term perspective, as a very important asset in their growth strategy," he said. Air France-KLM and Lufthansa remain in the race, while IAG, the owner of Iberia and British Airways, decided not to submit a proposal.

The government intends to sell up to 49.9% of the airline's capital. This includes 44.9% for a primary investor and 5% reserved for employees. 

The selection process will consider price, the industrial plan, connectivity, and the buyer's financial capacity.

The government expects to conclude the sale this year, with a decision on the buyer likely at a cabinet meeting in late August or early September, said Pinto Luz.

He said that the deadline for binding proposals should close "next July." Following this, Parpública, the manager of state holdings, will deliver a report to the government in August to allow for a final decision.

PCT/RYOL // ADB.

Lusa