Key Takeaways
- • Apollo Global Management has agreed to acquire easyJet for £5.7 billion (€6.6 billion / $7.7 billion USD) at £7.15 per share, after rival bidder Castlelake withdrew from the bidding process.
- • The transaction is expected to close by end of March 2027, with Apollo committing to retain easyJet's UK and EU head offices and pledging no job cuts during the first year post-completion.
- • EasyJet founder Stelios Haji-Ioannou and his family will retain their shareholding under the new ownership structure, with Apollo limited to 49.9% ownership and an "EU Trust" retaining up to 5% to comply with European Union foreign ownership rules for airlines.
- • Shareholders may elect to either sell or transfer their stakes, with up to 49.9% of shares available for transfer, while Apollo has committed to backing easyJet's current strategy and supporting long-term sustainable growth across European aviation.
- • The deal signals potential acceleration of private equity consolidation in European budget airlines, with market observers noting that further bids for competing carriers may follow Apollo's successful acquisition.
Summary
EasyJet has formally agreed to a £5.7 billion takeover by US private equity firm Apollo Global Management, concluding a competitive bidding process that intensified over recent weeks. The airline accepted Apollo's firm offer at £7.15 per share after rival bidder Castlelake declined to escalate its competing bid. The decision came within 24 hours of a final submission deadline, with Castlelake electing not to enter a bidding war. The transaction represents Apollo's entry into the European budget airline sector and marks a significant consolidation event in low-cost carrier ownership.
The deal structure reflects complex regulatory and ownership considerations specific to EU aviation. EasyJet founder Stelios Haji-Ioannou and his family retain their shareholding in the new ownership configuration. Shareholders have been offered the option to either sell or transfer stakes up to a maximum of 49.9%, while an "EU Trust" shareholding group will retain up to 5%—a structure designed to ensure compliance with European Union foreign ownership restrictions for airlines. Apollo's ownership stake is therefore capped at 49.9%, with the broader arrangement ensuring continued European control thresholds.
Apollo has committed to maintaining easyJet's strategic direction and operational footprint, explicitly confirming it will retain the airline's existing UK and EU head offices. The firm has pledged no involuntary job cuts during the first year following transaction completion. According to Alex van Hoek, Apollo's European private equity lead, the firm views easyJet as a market leader in European aviation with a differentiated competitive position, compelling customer proposition, and expansive network. Apollo stated it would support easyJet's commitment to enhancing connectivity across Europe and the UK while backing current management strategy.
The transaction is expected to complete by end of March 2027. Industry observers have flagged the acquisition as a potential catalyst for further private equity interest in European budget airlines, suggesting additional bids for competing low-cost carriers may materialize following Apollo's successful positioning in the sector.
The deal structure reflects complex regulatory and ownership considerations specific to EU aviation. EasyJet founder Stelios Haji-Ioannou and his family retain their shareholding in the new ownership configuration. Shareholders have been offered the option to either sell or transfer stakes up to a maximum of 49.9%, while an "EU Trust" shareholding group will retain up to 5%—a structure designed to ensure compliance with European Union foreign ownership restrictions for airlines. Apollo's ownership stake is therefore capped at 49.9%, with the broader arrangement ensuring continued European control thresholds.
Apollo has committed to maintaining easyJet's strategic direction and operational footprint, explicitly confirming it will retain the airline's existing UK and EU head offices. The firm has pledged no involuntary job cuts during the first year following transaction completion. According to Alex van Hoek, Apollo's European private equity lead, the firm views easyJet as a market leader in European aviation with a differentiated competitive position, compelling customer proposition, and expansive network. Apollo stated it would support easyJet's commitment to enhancing connectivity across Europe and the UK while backing current management strategy.
The transaction is expected to complete by end of March 2027. Industry observers have flagged the acquisition as a potential catalyst for further private equity interest in European budget airlines, suggesting additional bids for competing low-cost carriers may materialize following Apollo's successful positioning in the sector.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.