In a significant development, EasyJet has accepted a £5.7 billion acquisition offer from Apollo Global Management, a private equity firm based in the United States. This agreement follows the withdrawal of rival bidder Castlelake from the competition to acquire the airline. Under the terms of the deal, Apollo is set to pay £7.15 per share for EasyJet, with the transaction anticipated to be finalized by the end of March 2027, pending necessary regulatory approvals.
The takeover bid witnessed a competitive edge when Apollo raised its initial offer, surpassing Castlelake’s proposal. EasyJet had initially shown a preference for Castlelake, but the enhanced offer from Apollo prompted a bidding war that ultimately saw Castlelake step back without a final bid. Despite the change in ownership, EasyJet’s founder Stelios Haji-Ioannou and his family are expected to maintain their current shareholding. Apollo’s ownership will be limited to 49.9% to adhere to European Union ownership regulations.
Apollo has expressed a commitment to preserving EasyJet’s operational bases in both the UK and the European Union while endorsing the airline’s existing growth plans. The private equity firm has identified substantial long-term growth opportunities within EasyJet’s aviation networks across Europe and the UK. This strategic vision aligns with EasyJet’s focus on expanding its footprint in the aviation sector.
The board of directors at EasyJet highlighted that the Apollo offer provides immediate and compelling value to shareholders, acknowledging the airline’s robust standing and future potential. The announcement of the deal came in the wake of a notable fluctuation in EasyJet’s share prices. After experiencing a sharp decline following Castlelake’s withdrawal, the shares rebounded as investors reacted positively to the confirmation of the Apollo acquisition.