EasyJet has accepted a £5.7 billion acquisition offer from Apollo Global Management, a US-based private equity firm, after Castlelake, its rival in the bidding process, stepped aside. Apollo’s proposal includes a payment of £7.15 per share for easyJet, with the transaction anticipated to conclude by March 2027, pending regulatory approvals.
The airline initially leaned toward a potential deal with Castlelake. However, Apollo’s enhanced offer spurred a competitive atmosphere, leading to Castlelake ultimately retreating from the contest. Under the new arrangement, easyJet’s founder Stelios Haji-Ioannou and his family are expected to maintain their current shareholdings, while Apollo’s ownership will be limited to 49.9% to align with European Union ownership guidelines through a specially devised shareholding structure.
Apollo has expressed its intention to uphold easyJet’s headquarters in the UK and EU, as well as to back the airline’s existing growth trajectory. The firm identifies substantial long-term promise within easyJet’s European and UK aviation networks. This commitment is part of Apollo’s broader strategy to leverage easyJet’s established market presence for future expansion.
According to easyJet’s board, Apollo’s offer presents shareholders with immediate and compelling value, reflecting both the airline’s current strength and its future opportunities. The announcement arrived on the heels of a sharp drop in easyJet’s share price following Castlelake’s withdrawal, although the shares rebounded as investors reacted positively to the confirmed deal with Apollo.