EasyJet has reached a £5.7 billion acquisition agreement with American private equity firm Apollo Global Management, following the withdrawal of competitor Castlelake from the bidding war. Apollo has agreed to acquire EasyJet shares at a price of £7.15 each, with the transaction anticipated to close by March 2027, pending required approvals.
Initially, EasyJet had favored a potential acquisition by Castlelake. However, Apollo’s increased offer led to a competitive bidding process, which Castlelake ultimately chose not to pursue further. Under the terms of the agreement, EasyJet’s founder Stelios Haji-Ioannou and his family are expected to maintain their current shareholdings. Apollo’s ownership will be limited to 49.9%, with a specially designed shareholding structure to ensure compliance with European Union ownership rules.
Apollo has committed to keeping EasyJet’s headquarters in both the UK and the EU, while also supporting the airline’s existing growth plans. The private equity firm expressed optimism about the long-term potential of EasyJet’s aviation network across Europe and the UK.
The board of EasyJet has endorsed the offer, citing the immediate and attractive value it provides to shareholders, while also acknowledging the airline’s strong performance and future potential. This announcement follows a period of volatility in EasyJet’s share prices, which initially fell sharply after Castlelake withdrew, but later rebounded as investors reacted positively to the confirmed deal with Apollo.