EasyJet has agreed to a substantial £5.7 billion takeover by Apollo Global Management, a US-based private equity firm, following the withdrawal of its competitor Castlelake from the acquisition contest. Apollo has offered to pay £7.15 per easyJet share, with the completion of the transaction targeted for the end of March 2027, pending necessary regulatory approvals.
Initially, EasyJet had leaned towards a potential sale to Castlelake, but the dynamics shifted when Apollo elevated its offer, triggering a competitive bidding environment. Castlelake eventually opted not to pursue a final bid, leaving Apollo as the successful acquirer. Under the new ownership arrangement, EasyJet’s founder Stelios Haji-Ioannou and his family are expected to maintain their current shareholding. Moreover, Apollo’s stake will be limited to 49.9%, with a distinct shareholding structure to ensure compliance with European Union ownership requirements.
Apollo has assured its commitment to preserving EasyJet’s existing UK and European Union headquarters while supporting the airline’s current growth strategy. The private equity firm expressed confidence in EasyJet’s long-term potential within the European and UK aviation markets, indicating a positive outlook for the airline’s operational expansion and financial performance.
The board of EasyJet has endorsed the offer, highlighting that it provides shareholders with immediate and substantial value while acknowledging the airline’s robust position and promising future. This announcement followed a period of volatility in EasyJet’s share price, which initially dropped sharply after Castlelake’s withdrawal but subsequently rebounded as investors reacted favorably to the confirmed deal with Apollo.
