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EasyJet to Be Acquired by US Private Equity Firm Apollo for £5.7 Billion

EasyJet to Be Acquired by Apollo Global Management for £5.7 Billion
EasyJet has reached an agreement to be acquired by the US private equity firm Apollo Global Management in a deal valued at £5.7 billion. The airline confirmed the transaction on Thursday, with Apollo’s offer pricing EasyJet shares at £7.15 each. This development follows the withdrawal of rival bidder Castlelake, which had previously proposed a £5 billion offer, effectively ending the prospect of a bidding war just before the final offer deadline.
Details of the Acquisition and Shareholder Arrangements
Apollo’s bid, submitted last month, exceeded Castlelake’s earlier proposal, prompting EasyJet’s board to recommend acceptance of the higher offer after Castlelake chose not to increase its bid. Under the terms of the agreement, EasyJet’s founder Stelios Haji-Ioannou and his family will retain their stake in the company. Other shareholders will be given the option to sell or transfer their holdings, subject to a cap of 49.9%. Additionally, an “EU Trust” shareholder group will hold up to a 5% stake, a structure designed to ensure compliance with European Union regulations on foreign ownership. Apollo’s own stake will also be limited to 49.9%.
The acquisition is expected to conclude by the end of March 2027, pending regulatory approvals. Apollo has committed to maintaining EasyJet’s UK and EU headquarters and supporting the airline’s current strategic plans, which include long-term sustainable growth alongside ongoing fleet and business expansion.
Regulatory and Market Challenges Ahead
Despite board support, the deal faces potential hurdles, particularly regulatory scrutiny under the EU’s Foreign Subsidies Regulation, which could complicate the approval process. Market reactions have reflected some uncertainty, with EasyJet’s shares trading below Apollo’s offer price, indicating investor concerns about the likelihood of the deal’s completion.
Industry analysts have observed that the acquisition could significantly impact the competitive dynamics within the European aviation sector, although responses from competitors remain uncertain. Apollo’s pledge to uphold EasyJet’s existing strategy and invest in its future growth will be closely monitored by regulators and market participants as the transaction advances.
If finalized, this takeover would represent one of the largest private equity acquisitions in the European airline industry in recent years, potentially reshaping EasyJet’s trajectory amid a rapidly changing market environment.

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