International Airlines Group (IAG) has pulled out of the bid for a 49,9% stake in TAP Air Portugal after only the Lufthansa Group and Air France-KLM submitted bids by the April deadline.
Last year, Portugal's government relaunched the privatisation process of the airline by opening 44,9% of the company's capital to one or more investors and 5% to the employees. The Lufthansa Group, IAG and Air France-KLM all expressed interest.
IAG was interested in majority ownership, urging the Portuguese government to provide a clear path to 100% ownership in the future. The group said this was essential to meet margin targets and expand TAP in the long term.
According to Reuters, Lufthansa and Air France-KLM submitted their bids while IAG decided not to proceed with the acquisition.
