With the support of easyJet founder and largest shareholder Sir Stelios Haji-Ioannou and his family, Apollo Global Management has agreed to acquire the British low-cost carrier for £5.7 billion, bringing an end to a months-long bidding war with Castlelake and opening a new chapter for one of Europe’s leading budget airlines.
Under the terms of the agreement, Apollo will pay 715 pence per share in cash, valuing easyJet at approximately £5.7 billion ($7.7 billion).
The airline’s Board of Directors unanimously recommended that shareholders approve the offer. A decisive factor was the support of the Haji-Ioannou family, which owns approximately 15.3% of the company and remains its largest shareholder.
The deal will also mark easyJet’s departure from the London Stock Exchange after more than 25 years as a publicly traded company, taking the airline private.
Haji-Ioannou family backs Apollo
Sir Stelios Haji-Ioannou said that he and his family had decided to support Apollo’s offer while retaining a significant stake in the privately held airline after the acquisition closes.
“After careful consideration of Apollo’s proposal, my family and I have decided to support the proposed acquisition as recommended by the easyJet Board,” he said.
The easyJet founder added that his family intends to remain long-term shareholders in the new private company and continue supporting its future growth.
He also welcomed Apollo’s strategic vision, describing the investment as a strong vote of confidence in both easyJet and the easy brand, which continues to be owned by easyGroup.
Reflecting on the airline’s history, Haji-Ioannou noted that he founded easyJet in 1994 at the age of 27 and that its 2000 London Stock Exchange listing enabled the airline to expand from 19 aircraft to a fleet of around 356 Airbus aircraft today.
Castlelake withdraws after bidding battle
The agreement concludes one of the most closely watched takeover battles in the European aviation sector this year.
Castlelake began pursuing easyJet in late May, submitting a series of improved offers while criticizing the airline’s board for what it described as limited engagement during negotiations.
easyJet had initially dismissed Castlelake’s proposals as opportunistic, arguing that the investment firm was attempting to acquire the airline at an undervalued price.
Castlelake’s opening bid stood at 560 pence per share before being raised several times. By early July, easyJet had reached preliminary agreement on a fifth proposal worth 690 pence per share.
Days later, Apollo surprised the market with a 715 pence per share offer, which the board deemed superior both financially and strategically, withdrawing its support for Castlelake’s proposal.
Castlelake subsequently announced it was ending its pursuit of the airline.
What Apollo is acquiring
Once the transaction is completed, Apollo will gain control of one of Europe’s strongest low-cost airlines.
easyJet operates a modern Airbus A320-family fleet, holds valuable airport slots at major hubs including London, Milan, and Geneva, and owns the fast-growing easyJet Holidays package holiday business.
Apollo described easyJet as “one of the most attractive businesses in the global aviation industry,” citing its strong brand, leading positions in key European markets, and significant long-term growth potential.
Regulatory hurdles remain
The acquisition still requires regulatory approval.
Because Apollo is a U.S.-based investment firm, it cannot exercise unrestricted ownership over easyJet in the same way as a conventional corporate acquisition. UK and EU aviation rules require majority ownership and effective control of airlines operating under their jurisdictions to remain in British or European hands.
Apollo said the transaction has been structured to comply fully with all applicable regulations.
However, its long-term plans for the airline remain unclear. Analysts have suggested a range of possibilities, including optimizing specific assets, restructuring the route network, and placing greater emphasis on leisure travel and holiday destinations.
A deal at a pivotal moment
The acquisition comes as easyJet faces mounting challenges.
The airline has been hit by higher jet fuel prices following the escalation of tensions in the Middle East, while first-quarter pre-tax profit fell to £85 million, down around 70% from a year earlier.
Despite these pressures, easyJet says demand remains resilient, with passengers booking flights earlier than in previous years, supporting confidence in the airline’s long-term outlook.
With the backing of its largest shareholder and Castlelake’s withdrawal from the process, Apollo is now on the verge of completing what is expected to be one of the largest airline acquisitions in Europe in recent years.
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