Apollo Wins EasyJet Takeover Battle in £5.7 Billion Deal
Private equity firm Apollo Global Management secures EasyJet at £7.15 per share in cash after rival Castlelake steps down.
Stock photo for illustration only, not from the actual event
- Apollo Global Management has agreed to acquire EasyJet for approximately £5.7 billion or $7.7 billion.
- The all-cash offer stands at £7.15 or $9.62 per share, outbidding Castlelake's previous £6.90 proposal.
- Apollo's ownership stake is capped at 49.9% to comply with strict EU and UK airline majority-ownership rules.
- Founder Stelios Haji-Ioannou's family, holding 15.3%, will remain long-term investors and keep brand ownership through EasyGroup.
The European aviation sector is witnessing a major shift as Apollo Global Management successfully clinched a takeover agreement for low-cost airline EasyJet. Valued at roughly £5.7 billion or $7.7 billion, the deal brings a three-month bidding contest to a close after rival U.S. suitor Castlelake officially declined to raise its previous offer.
Under the terms published, Apollo will disburse £7.15 or $9.62 per share in cash. This surpassed Castlelake's competing bid of £6.90 per share, reflecting a price gap of approximately $200 million alongside a superior ownership structure designed by Apollo.
Stock photo for illustration only, not from the actual event
Navigating strict aviation regulations was the central hurdle of the transaction. Because EasyJet holds operating certificates in the United Kingdom, Austria, and Switzerland, the airline is legally required to remain majority-owned and controlled by European Union or UK nationals. Apollo successfully bypassed this restriction by capping its stake in the new parent company at 49.9%, leaving existing shareholders and a management-linked EU trust with effective majority control.
Meanwhile, the family of founder Stelios Haji-Ioannou, which remains the largest shareholder with a 15.3% stake, intends to maintain a long-term investment in the company. The family's private entity, EasyGroup, will retain ownership of the EasyJet brand name and continue licensing it to the airline.
Apollo's strategy of capping its stake just below the 50% threshold serves as a fascinating blueprint for foreign private equity firms eyeing European carriers. Given stringent local ownership mandates designed to protect national operating licenses, structuring a buyout without violating regulatory control requirements could pave the way for similar cross-border airline acquisitions in the future.
Looking ahead, Apollo stated its intention to accelerate EasyJet's existing corporate strategy rather than overhaul it. Key operational priorities will include loyalty programs, ancillary revenue streams, and the rapid expansion of the EasyJet Holidays sector. Operating across 37 countries, EasyJet currently transports more than 100 million customers annually.
The transaction is slated for final completion by the end of the first quarter of 2027, pending standard approvals from shareholders, courts, and regulatory authorities in markets including the UK and Germany.
Source: Skift
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