Apollo Global Management has entered the bidding war for easyJet with a £5.7 billion ($7.7 billion) offer, surpassing Castlelake's earlier bid. This latest offer from Apollo values easyJet at £7.15 per share, which is higher than Castlelake's proposed £6.90 per share. EasyJet's board has withdrawn its support for Castlelake's offer and has agreed in principle to Apollo's new bid, stating it offers a "superior outcome" for shareholders.
The swift turnaround comes just days after easyJet had provisionally accepted Castlelake's $7.3 billion offer. Castlelake had initially built a 2.14% stake and made several bids after easyJet's shares fell approximately 20% since the start of 2026. The easyJet board had previously rejected a £4.93 billion offer from Castlelake but granted them limited access to commercial data, leading to the sweetened offer that was then trumped by Apollo.
Analysts note that the increased competition is positive for easyJet shareholders, highlighting a potential undervaluation of the airline. However, concerns remain regarding regulatory hurdles, particularly EU ownership requirements for airlines, which would apply to any non-EU acquirer. Both Apollo and Castlelake face deadlines to firm up their offers, with Apollo's deadline set for August 7 and Castlelake's for August 3. John Strickland, an airline analyst, suggests the Apollo bid supports easyJet's current growth strategy, including expansion and its holidays business. Apollo also plans to retain the easyJet brand and existing licensing agreement with founder Stelios Haji-Ioannou's easyGroup.
