EasyJet has agreed in principle to a £5.7 billion ($7.2 billion) takeover proposal from US firm Apollo Global Management. This comes just days after EasyJet had initially accepted an offer from rival suitor Castlelake. Apollo's bid, at £7.15 per share, is higher than Castlelake's £6.90 per share proposal, which EasyJet is now "no longer minded" to accept, calling Apollo's offer a "superior outcome" for investors.
The initial interest in EasyJet became public on May 28, when Castlelake's first offer was made. Apollo's offer represents an 81% increase from EasyJet's share price of £3.94 on that day. Castlelake had previously made a series of offers that were initially rebuffed by EasyJet, which accused the US firm of trying to buy it "on the cheap" due to a "temporarily depressed" share price.
The deal is not yet confirmed, as Apollo has a deadline of 5 PM on August 7, 2026, to make a firm bid or withdraw. Castlelake's deadline is August 3. Analysts view EasyJet as an attractive target due to its profitability, large fleet, and valuable take-off and landing slots at major airports. However, a significant regulatory hurdle is that EU regulations require the airline to be majority-owned by EU citizens, though Apollo has stated it will take "all necessary steps" to meet these conditions. Castlelake had proposed partnering with two EU nationals to address this.
Shares in EasyJet jumped nearly 15% to approximately 673p following the news of Apollo's bid. Conroy Gaynor, a senior consumer analyst at Bloomberg Intelligence, noted that while Apollo supports EasyJet's growth model, success in lowering costs might not translate to lower fares for passengers. Susannah Streeter, chief investment strategist at Wealth Club, highlighted EasyJet's resilient European network, strong balance sheet, and fast-growing holidays business as key attractions for Apollo, as package holidays offer higher margins and more predictable revenues. For passengers, it's expected to be "business as usual" while any deal navigates the regulatory process.
