Lisbon, Sept. 6, 2026 (Lusa) - Portugal's government has extended the deadline for the completion of TAP's privatisation until the end of the year, to allow for three weeks of final negotiations with Air France-KLM and Lufthansa and the submission of their respective improved binding bids.
Under the terms of cabinet Resolution No. 176-A/2026 of 4 September, the government resolved «to extend […] the duration of the direct sale process in question until 31 December 2026, so as to allow for the conclusion of the negotiation phase and the submission of final, improved binding offers, […] as well as the drafting of the report […], the selection of the offer and the approval of the draft contractual documents […], their acceptance by the selected bidder and the resolution of any complaints […], and the conclusion of the contractual documents».
On Friday, the minister of cabinet affairs, Leitão Amaro, announced that the government would begin final negotiations with the two bidders who had submitted binding offers to purchase 44.9% of TAP: the Franco-Dutch group Air France-KLM and the German airline Lufthansa.
The minister stated that, whilst the bids differ, they are «very close in their overall valuation», which justifies «negotiations» with both bidders, with the aim of securing «improved proposals» so that the government can select «a single bidder for the final round of negotiations».
He noted that the proposals are «overall so close that it is in the national interest to have an additional, final phase of negotiations with both» bidders, with this final negotiation period with the two bidders lasting «a few weeks».
The cabinet's resolution, which has since been published, specifies that the negotiation stage for the submission of final, improved and binding proposals will «last three weeks».
It states that Parpública will invite each of the bidders to take part in the final negotiation stage, specifying «the terms and conditions under which it will take place, as well as the content and terms for the submission of the final and improved bids».
It further stipulates that the ministers in charge of finance and infrastructure will «adjust, during the negotiation phase, the deadline for the submission of final and improved binding bids», as well as extend the deadline for the submission of Parpública's report detailing the improved bids received.
The TAP privatisation process provides for the sale of up to 49.9% of TAP's share capital, with 5% reserved for employees; the selected investor may acquire any unsubscribed portion under a right of first refusal.
Air France-KLM and Lufthansa submitted binding bids in the TAP privatisation process on 29 July, the final day of the deadline.
The final bids include the financial and strategic terms for acquiring a stake in the airline; the planned investment, fleet development, commitment to areas such as maintenance and sustainable fuels, and compliance with labour commitments are also being assessed.
From the outset, the process included an optional negotiation phase to refine bids before the investor is selected.
The final decision will also involve a series of formal steps, including cabinet approval and the ‘green light' from the European competition authorities.
PD/ADB // ADB.
Lusa
