EasyJet Agrees to £5.7bn Takeover by US Firm Apollo After Rival Bows Out
Major European low-cost airline accepts acquisition deal as investment firm Castlelake withdraws from the bidding war.
Stock photo for illustration only, not from the actual event
- Apollo secures a £5.7bn takeover deal for low-cost carrier EasyJet
- Castlelake withdraws from the battle after submitting multiple offers
- Shareholders are set to receive £7.15 per share in cash
- Apollo states no job cuts are intended in the first 12 months
The European aviation sector is facing a major shake-up as budget airline EasyJet agreed to be acquired in a £5.7bn deal by US investment firm Apollo. The agreement was reached after rival US investment firm Castlelake, which had previously made multiple approaches to buy the carrier, officially dropped out of the bidding battle.
Uncertainty had surrounded EasyJet's ownership since late May when reports emerged that Castlelake was eyeing a takeover. Initial approaches were rebuffed after the airline accused the US firm of attempting a cheap buyout. By early July, a tentative deal seemed in place before Apollo, the parent company of Wagamama operator The Restaurant Group, stepped in with a higher counter-offer.
Stock photo for illustration only, not from the actual event
Under the terms proposed by Apollo, EasyJet shareholders will receive £7.15 per share. EasyJet ranks as one of Europe's largest carriers, established in 1995 by Sir Stelios Haji-Ioannou to provide affordable air travel from the UK to Europe. Its inaugural flights launched in November 1995 connecting Luton to Glasgow and Edinburgh, followed by international routes the next year. Today, the airline employs over 19,000 people and operates roughly 1,200 routes across 35 European countries.
"EasyJet is a leader in European aviation, having built a differentiated market position through its compelling customer proposition, expansive network and strong brand."
European Union aviation regulations dictate that airline owners must maintain a majority EU-based ownership structure. Apollo anticipates meeting this requirement by ensuring the Haji-Ioannou family and other EU-based shareholders retain approximately half of the business.
Cross-border airline acquisitions often navigate complex regulatory hurdles, particularly regarding international traffic rights and ownership caps mandated by aviation authorities. Apollo's strategy to keep roughly half of the ownership within EU-based shareholders is a crucial maneuver designed to preserve the airline's operational licenses and route authorities across European airspace following the buyout.
Regarding workforce impact, Apollo confirmed it does not plan to cut any jobs for at least 12 months following the completion of the takeover. Nevertheless, if the transaction finalizes and EasyJet delists from the stock exchange to operate privately, a limited number of roles specifically connected to maintaining public-listed operations could face elimination.
Source: BBC Business
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