EasyJet announced on Thursday that it had accepted a firm acquisition offer from Apollo Global Management valued at £5.7bn. The transaction, priced at £7.15 per share, came after competitor bidder Castlelake withdrew from its attempted acquisition pursuit. Apollo had submitted its offer in the preceding month after initially the airline had recommended a sale to Castlelake instead. The formal acceptance was reached one day before a deadline requiring both parties to present final bids, with Castlelake choosing not to escalate into a competitive bidding situation.
The ownership structure resulting from the deal incorporates several parties with specific stake limits. Founder Stelios Haji-Ioannou and his family will maintain their shareholding position. Other shareholders have the option to either sell their stakes or transition them under the new ownership, with a maximum threshold of 49.9%. An “EU Trust” shareholding structure will retain up to 5%, an arrangement that appears intended to satisfy European Union foreign ownership restrictions applicable to airlines. Apollo’s ownership stake will be capped at 49.9%.
Apollo has committed to preserving easyJet’s existing head office locations in the UK and EU while supporting the airline’s current strategic direction and backing efforts toward long-term sustainable expansion. Company leadership expressed support for the transaction, with the chair noting that while remaining confident in standalone prospects, the offer appropriately values the business and delivers immediate and certain shareholder returns. The chief executive highlighted Apollo’s aviation sector experience as beneficial for accelerating growth initiatives and maintaining customer service standards.
The acquisition is anticipated to finalize by the end of March 2027. Market reaction to the completion of negotiations was mixed, as EasyJet’s share price initially declined 10% following Castlelake’s exit announcement before recovering to close the trading day up 3% from its opening level.
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