The winner of TAP's privatization will be known in mid-October according to the Government's new timeline. The Council of Ministers decided to invite both Air France-KLM and Lufthansa to a three-week negotiation phase after confirming that the binding proposals submitted by the two groups were equivalent. After this negotiation period, both companies will submit revised final proposals, followed by the preparation of a new evaluation report by Parpública, which will be submitted to the Government.
The Minister of the Presidency, António Leitão Amaro, referred to the Government's willingness to move forward quickly with this final stage, in a process described as "to advance with urgency, in the superior national interest," speaking of a timeframe of "weeks, not months." The future buyer will acquire up to 49.9% of TAP, with 5% preferentially reserved for workers.
The proposals have such a close overall evaluation that this negotiating effort with both parties is justified, so that then, based on improved proposals, the decision can be made regarding the single competitor who will proceed to the final negotiation. The decision will be communicated simultaneously to both competitors.
The process also includes formalities such as approval by the Council of Ministers of the contractual instruments prepared by Parpública, sending the drafts to the investor for possible objection within five days, and signing of contracts. The winning group will still need to obtain the necessary regulatory authorizations, including from the European Commission, which will delay the completion of the process until 2027. Only after the green light from Brussels will the payment to the State occur, an amount that will reduce public debt, and the shares will be delivered to TAP's new partner.
