EasyJet has entered into a definitive agreement to be acquired by US-based private equity firm Apollo Global Management for £5.7 billion. According to Aviation Source News, this agreement brings a conclusion to a competitive bidding process that saw interest from multiple parties. Apollo’s successful offer follows the formal withdrawal of rival bidder Castlelake.
Transaction Details and Timeline
The bidding process for the airline began in late May and early June 2026. Initially, EasyJet rejected multiple proposals from Castlelake on the grounds that the offers undervalued the carrier. By early July, the parties had reached a conditional agreement at £6.90 per share, which placed the valuation of the airline at approximately £5.5 billion. However, Apollo subsequently entered the process with a superior bid that was ultimately accepted by the EasyJet board.
| Detail | Information |
|---|---|
| Acquisition Price | £5.7 billion |
| Price Per Share | £7.15 (cash) |
| Previous Bidder | Castlelake |
| Previous Valuation | £5.5 billion (£6.90/share) |
Operational Strategy and Compliance
Under the terms of the deal, shareholders are entitled to £7.15 in cash per share. The transaction provides an option for eligible shareholders to roll a portion of their holdings into the new private entity. To satisfy EU regulatory requirements concerning airline ownership and control, Apollo plans to ensure approximately half of the business remains with the Haji-Ioannou family and other EU-based investors. The EasyJet brand will remain in operation, and the firm has committed to maintaining current employment levels for at least 12 months post-acquisition.
Why It Matters
The acquisition signals a shift in private equity interest toward legacy low-cost carriers, reflecting a belief in the long-term operational efficiencies of the model despite current macroeconomic volatility. By transitioning to a private company, EasyJet will effectively remove the burden of public market reporting and short-term earnings pressure, allowing management to prioritize infrastructure and fleet optimization. However, the requirement to maintain EU majority control highlights the specific regulatory hurdles inherent in cross-border airline acquisitions, setting a complex governance precedent for future aviation-sector private equity buyouts.
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