Portugal receives assessment of binding bids for flag carrier TAP privatisation

LISBON, Sept 1 (Reuters) - The Portuguese government has received state holding company Parpublica's assessment of rival binding bids from Air France-KLM and Lufthansa for a minority stake in flag carrier TAP, it said on Tuesday, a step towards a final decision.

• Lisbon revived TAP's long-delayed privatisation in July 2025, seeking a strategic investor for a 44.9% stake in the flag carrier, and aims to complete the process this year.

• The Finance Ministry said in a statement, "The government will now analyse the document and, in due course, will make its position known in order to continue the process," without providing any details of the assessment.

• After reviewing Parpublica's assessment, the government can either select a winning bid or open a negotiation phase, inviting one or both bidders to submit improved final offers.

• The government has said its final decision will not be based solely on price, but also on which bidder is best placed to expand the carrier's international footprint and strengthen its competitiveness.

• Air France-KLM and Lufthansa submitted binding bids in July, including strategic industrial plans and financial offers, but neither the government nor the airlines have disclosed details of the proposals.

• TAP's main attraction is its prized and lucrative slots linking its Lisbon hub with Brazil, Portuguese-speaking African countries and the United States, important routes for Portugal's diaspora, tourism and investment.

• Air France-KLM has said it would make Lisbon its sole hub in southern Europe if selected, while Lufthansa has pledged to strengthen its role as an Atlantic hub, citing its track record in developing SWISS, Austrian Airlines, Brussels Airlines and ITA Airways.

• Bernstein analysts valued the 44.9% stake at about €700 million ($798 million), implying a €1.5 billion valuation for TAP, though the value of the bids was not disclosed.

(Reporting by Sergio Goncalves; Editing by Cynthia Osterman)