EasyJet has confirmed a £5.7 billion takeover by Apollo Global Management, a US-based private equity firm, after competing bidder Castlelake withdrew from the acquisition process. Apollo will acquire easyJet by paying £7.15 per share, with the transaction anticipated to finalize by March 2027, pending necessary approvals.
The acquisition comes after a competitive bidding situation in which easyJet initially recommended a sale to Castlelake. However, Apollo increased its offer, ultimately leading Castlelake to exit the race without submitting a final bid. Despite the shift in ownership, easyJet founder Stelios Haji-Ioannou and his family are expected to maintain their current shareholding.
Under the terms of the agreement, Apollo’s ownership stake will be limited to 49.9%, with a separate shareholding structure in place to ensure compliance with European Union ownership regulations. Apollo has also pledged to keep easyJet’s headquarters in both the UK and the EU while endorsing the airline’s existing growth strategy.
Apollo perceives substantial long-term growth potential in easyJet’s aviation operations across Europe and the UK. The private equity firm has expressed its commitment to supporting easyJet’s strategic initiatives and enhancing its network reach. The airline’s board has endorsed the deal, highlighting the immediate and appealing value it offers to shareholders while acknowledging the airline’s robust prospects.
The announcement of Apollo’s successful bid follows a period of volatility in easyJet’s stock, which initially fell sharply after Castlelake withdrew but recovered as investors reacted positively to the confirmed agreement with Apollo.