Lufthansa wins TAP bid, targets DAX return

Lufthansa has won the bid for a 45% stake in TAP Air Portugal, defeating rival Air France-KLM. CEO Carsten Spohr will pay approximately €1 billion for the stake, with the total potentially reaching €1.2 billion. Lufthansa's offer was 16% higher than the French competitor's. TAP operates 101 aircraft and serves 93 destinations, including 16 in Latin America and 14 in Africa. In the first half of the year, TAP carried 8.2 million passengers, a record, and generated over €2 billion in revenue, also a record, but posted a loss of nearly €100 million. The acquisition secures Lisbon as a hub for growth markets, providing Lufthansa with a strategic base for expanding into high-growth African and Latin American regions. Lufthansa, which has been absent from the DAX index since 2020, could use this growth story to re-enter the index. Portugal may swap its remaining TAP stake for Lufthansa shares in 2028, which would make the state a 5% shareholder in the German carrier.