London, United Kingdom: EasyJet has agreed to Apollo Global Management’s £5.7 billion (US$7.67 billion) takeover proposal, offering shareholders £7.15 per share after rival US investment firm Castlelake withdrew from the takeover race, ending months of competing approaches for the British low-cost carrier. The transaction, announced on August 6, 2026, values easyJet at £7.15 per share and has been unanimously recommended by the airline’s board.
The development follows Castlelake’s decision earlier the same day not to proceed with an offer. Castlelake had made five proposals for easyJet before Apollo entered the process, with its latest proposal valuing the airline at around £5.5 billion (US$7.4 billion), or £6.90 per share. Castlelake confirmed that, after considering the situation, it “does not intend to make an offer for easyJet,” bringing its pursuit to an end without giving a reason for the withdrawal.
Apollo’s proposal emerged in July after easyJet had moved closer to a potential agreement with Castlelake. On July 5, easyJet said its board was minded to recommend Castlelake’s £6.90-per-share proposal, following several earlier approaches that had been rejected. The situation changed just days later when Apollo submitted a higher £7.15-per-share proposal on July 8. On July 10, easyJet and Apollo announced an agreement in principle on the key financial terms of a possible cash offer.
The earlier Castlelake campaign had itself followed a series of rejected bids. Its third proposal, submitted in June, offered 625 pence per share and valued easyJet at approximately £4.7 billion (US$6.3 billion). At the time, easyJet’s board described the proposal as “highly opportunistic” and said it “fundamentally undervalues easyJet and its medium-term prospects.” Castlelake subsequently increased its offer to £6.90 per share, prompting the board to reconsider its position before Apollo ultimately overtook it.
Under the Apollo transaction, easyJet shareholders will receive £7.15 in cash for each share, valuing the fully diluted ordinary share capital at approximately £5.7 billion (US$7.67 billion). The offer represents an 81% premium to easyJet’s closing share price of £3.94 on May 28, the last trading day before Castlelake’s interest in the airline became public. Apollo has also proposed a Stub Equity Alternative, allowing eligible shareholders to roll their existing holdings into the investment vehicle through which Apollo would own easyJet.
The airline’s board, advised by Evercore, has unanimously recommended the Apollo offer, saying it considers the terms fair and reasonable. Non-Executive Chair Stephen Hester said, “While we remain confident in the strength of our business and the opportunities ahead, we believe this offer appropriately recognises the quality of the business we have built and delivers immediate, certain and attractive value for shareholders.”
British low-cost carrier founder Sir Stelios Haji-Ioannou and his family, who hold about 15.3% of the airline, have also backed the transaction. Haji-Ioannou said, “Having carefully reviewed the proposal by Apollo, my family members and I have decided to support the recommended acquisition announced by the easyJet board.” His support removes a significant shareholder hurdle as the proposed transaction moves forward.
Apollo has said it intends to support easyJet’s existing strategy rather than fundamentally change the airline’s business model. Its plans include accelerating the carrier’s commercial ambitions, continuing fleet modernisation and upgauging, strengthening ancillary and loyalty offerings, and expanding easyJet Holidays. Apollo has also indicated that it values the easyJet brand and intends to maintain the existing brand licence arrangement with easyGroup.
A key issue surrounding the transaction is European ownership regulation. easyJet operates extensively within the European Union, where airlines must remain majority owned and controlled by EU interests to retain relevant traffic rights. Under the proposed structure, Apollo’s funds would hold no more than 49.9% of the purchasing vehicle, while existing shareholders, including the Haji-Ioannou family, could retain between 45.1% and 49.9%. An EU management trust would hold up to a further 5%.
The proposed acquisition also comes as European airlines face higher operating costs and continuing uncertainty across the aviation market. With Castlelake now out of the process, Apollo’s £5.7 billion proposal has emerged as the recommended transaction for easyJet. The deal still requires the necessary regulatory and shareholder approvals before completion, meaning the takeover is not yet the final transfer of ownership. If completed, it would take one of Europe’s major low-cost carriers off the London Stock Exchange and place easyJet under private-equity ownership.
