In a significant development for the aviation industry, EasyJet has consented to a £5.7 billion acquisition by Apollo Global Management, a private equity firm based in the United States. This agreement follows the withdrawal of a competing offer from Castlelake, which had initially been in the running for the takeover. Apollo’s successful bid entails a payment of £7.15 per share for EasyJet, with the transaction anticipated to close by the end of March 2027, pending customary regulatory approvals.
EasyJet had previously been inclined towards a potential acquisition by Castlelake, but the situation changed when Apollo upped its offer. This escalation led to a competitive atmosphere, ultimately resulting in Castlelake opting not to place a final bid. Under the terms of the new deal, EasyJet’s founder, Stelios Haji-Ioannou, along with his family, will maintain their current shareholding. Apollo’s ownership will be limited to a maximum of 49.9%, with a distinct shareholding arrangement established to ensure compliance with European Union ownership regulations.
Apollo has expressed its commitment to sustaining EasyJet’s operational bases in both the United Kingdom and the European Union, while also endorsing the airline’s existing expansion plans. The private equity firm has highlighted its belief in the substantial long-term growth potential of EasyJet’s network across Europe and the UK. Meanwhile, EasyJet’s board has endorsed the offer, noting that it delivers immediate and compelling value to shareholders while acknowledging the airline’s robust position and future opportunities.
The announcement of the takeover comes amid a period of volatility for EasyJet’s shares, which experienced a notable decline following Castlelake’s decision to withdraw. However, the confirmation of Apollo’s deal has led to a recovery in share prices, reflecting investor confidence in the new agreement. This strategic move positions EasyJet to continue its growth trajectory under the partial ownership of Apollo, while adhering to regulatory requirements.