EasyJet has agreed to a £5.7bn cash takeover by Apollo Global Management at £7.15 a share, ending a contested sale process that saw rival bidder Castlelake walk away rather than enter a bidding war. The deal hands Apollo 49.9% of the airline, with an EU Trust retaining up to 5% and founder Stelios Haji-Ioannou’s family keeping their stake, a structure built to satisfy European foreign-ownership rules while giving shareholders the option to sell or roll up to 49.9% of their holding.
The terms and the timeline
The board recommended Apollo’s offer on Thursday, 24 hours before a deadline for final bids, after Castlelake confirmed it would not improve its earlier proposal. Completion is targeted for the end of March 2027. Apollo has committed to keeping EasyJet’s UK and EU head offices and to backing the airline’s current strategy, though the source does not disclose a break fee or any material conditions beyond regulatory clearance. The £7.15 price represents a premium to the undisturbed share price, but the source does not state the reference date or the percentage.
The ownership architecture
The 49.9% cap on Apollo and the 5% EU Trust are not cosmetic. EU regulations require majority ownership and effective control by EU or EEA nationals for an airline to hold an EU operating licence. By capping the US buyer and ring-fencing a trust, the structure preserves EasyJet’s European traffic rights post-Brexit. Haji-Ioannou’s retained stake means the founder remains a meaningful shareholder under private-equity control, an arrangement that aligns his interest with Apollo’s but also preserves a potential block on future structural changes.
What the board said versus what the market did
Chair Stephen Hester said the board remained confident in EasyJet’s standalone prospects but judged the offer to deliver “immediate, certain and attractive value.” Chief executive Kenton Jarvis welcomed Apollo’s aviation experience. The market’s initial reaction was a 10% drop on news of Castlelake’s exit, then a rebound to 3% above the day’s open, a move that suggests investors had priced in a lower probability of any deal completing, not that they view £7.15 as generous.
What to watch next
The long lead time to March 2027 leaves room for regulatory scrutiny in both the UK and EU, particularly on the EU Trust’s independence and whether Apollo’s 49.9% constitutes de facto control. Shareholder approval is still required. Apollo’s track record in aviation, including stakes in AerCap and WestJet, will be tested against EasyJet’s cost base and slot portfolio. The rollover option for shareholders means the register could remain fragmented, which may complicate any future exit or relisting.