EasyJet backs £5.7bn Apollo takeover

EasyJet has agreed to be taken over in a £5.7 billion all-cash deal by Apollo Global Management, marking a major change in ownership for the UK-listed budget airline. Under the terms of the agreement, Apollo will pay £7.15 per share, or 715 pence, valuing the carrier at around $7.7 billion. The offer has been formally accepted by EasyJet, paving the way for the airline to leave the public markets if the transaction completes as planned.

The takeover terms were disclosed on 6 August 2026 and reflect a full acquisition of EasyJet by the US-based investment group. Apollo has indicated it intends to take the airline private once the deal is completed. The agreed price per share and overall equity value were consistent across multiple announcements, underscoring the scale of the proposed transaction.

The agreement with Apollo followed the withdrawal of rival private equity firm Castlelake from the bidding process. Castlelake confirmed it would not make an offer for EasyJet, effectively ending a potential contest for control of the airline. Its decision removed competitive pressure around the sale and left Apollo as the sole remaining bidder.

Castlelake’s exit came shortly before a deadline for submitting final offers. Reporting indicates that the rival suitor declined to enter a bidding war at the price level proposed by Apollo. With no competing proposal outstanding, EasyJet moved to back Apollo’s bid as the recommended transaction.

The proposed takeover remains subject to several conditions before it can close. These include approval by EasyJet shareholders, sanction by the relevant court and regulatory clearances in the jurisdictions involved. Only once these requirements are satisfied will the transaction be able to complete and the airline be taken private under Apollo’s ownership.

Both sides currently expect the deal to complete by the end of the first calendar quarter of 2027, around the end of March that year. The timeline reflects the need to navigate regulatory reviews as well as the formal processes required for a change of control of a listed company. Until completion, EasyJet will continue to operate as a publicly traded airline.

Apollo has stated it is highly supportive of EasyJet’s existing strategy and sees a significant opportunity to accelerate the airline’s operational and commercial ambitions. The buyer has presented itself as aligned with management’s current direction rather than seeking an immediate overhaul of the business model. This positioning frames the deal as an opportunity to provide additional capital and backing for the carrier’s plans.

EasyJet’s shares were volatile as the takeover picture clarified. The stock initially fell after Castlelake announced it would not make an offer, reflecting investor uncertainty about competitive tension in the process. However, the share price then rebounded once Apollo’s recommended bid was confirmed, trading roughly 3% to 3.6% higher in afternoon dealings in London. The move suggested investors were broadly supportive of the agreed takeover valuation.