Finance
Iag Likely to Abandon Pursuit of Portugal's Tap, Bloomberg News Reports
Published by Global Banking & Finance Review®
Posted on March 20, 2026
1 min readLast updated: March 20, 2026
Quick Summary
British Airways‑owner IAG is reportedly set to abandon its bid for a minority stake in TAP Air Portugal, Bloomberg says. While non‑binding offers are due by April 2, IAG’s concerns over governance and lack of path to majority control may scupper any final move.
IAG Expected to Withdraw from Pursuit of TAP Portugal as Bidding Deadline Nears
IAG's Interest in TAP Portugal and the Privatisation Process
Background: IAG's Initial Interest
March 20 (Reuters) - British Airways-owner IAG is likely to abandon its interest in pursuing an offer for Portugal's flag carrier TAP, Bloomberg News reported on Friday, citing people familiar with the matter.
IAG announced in November that it had interest in buying a minority stake in the carrier, joining European rivals Air France-KLM and Germany's Lufthansa, which had also expressed interest in the privatisation of TAP.
Current Status of the Bidding Process
No final decision has been made, and IAG could also make a non-binding offer by the April 2 deadline, but then not pursue an actual deal, the report added.
Details of TAP Privatisation
Portugal relaunched the long-delayed privatisation of TAP in July last year, looking to sell a 49.9% stake. The Portuguese government had invited the three parties to submit non-binding offers in early January.
Official Responses and Reporting
IAG and the Portuguese government did not immediately respond to Reuters' requests for comment.
(Reporting by Unnamalai L in Bengaluru. Editing by Alan Barona)
Key Takeaways
- •IAG, along with Air France‑KLM and Lufthansa, originally signaled interest in TAP’s privatisation but has flagged that a minority stake capped at 49.9 % limits its ability to improve margins and control operations (aman-alliance.org).
- •IAG could technically submit a non‑binding bid by April 2, 2026, but emphasises the deal would only proceed if terms include a clear route to majority or full ownership (aman-alliance.org).
- •Portugal relaunched TAP’s long‑delayed privatisation in mid‑2025, offering up to 44.9 % to investors and reserving 5 % for employees, with IAG and two other airline groups pre‑qualified for the next stage (travelextra.ie).
References
Frequently Asked Questions about IAG likely to abandon pursuit of Portugal's TAP, Bloomberg News reports
1Why is IAG likely to abandon its pursuit of TAP Portugal?
According to Bloomberg News, IAG is likely to abandon its interest in submitting a bid for TAP Portugal, based on information from sources familiar with the matter.
2Who are the other major bidders for TAP's privatisation?
Air France-KLM and Lufthansa have also expressed interest in TAP Portugal's privatisation process.
3What is the Portuguese government selling in the TAP privatisation?
The Portuguese government is seeking to sell a 49.9% stake in TAP Portugal.
4Has IAG made a final decision regarding TAP Portugal?
No final decision has been made yet; IAG could still submit a non-binding offer by the deadline but might not continue with the deal.
5When is the deadline for submitting offers for TAP Portugal?
The deadline for submitting non-binding offers is April 2.
