Apollo seals £5.7bn Easyjet takeover after Castlelake exits bidding

Apollo Global Management has agreed a recommended £5.7bn cash acquisition of Easyjet, ending a protracted takeover battle after rival suitor Castlelake withdrew from the process on Thursday. The deal, announced jointly by the US private markets firm and the airline's board, values the FTSE 250 carrier at a significant premium to its pre-bid share price and will take it off the London Stock Exchange.

Castlelake, the Minneapolis-based alternative investor, had seen a preliminary £5.5bn offer accepted only days earlier, but the Easyjet board switched its recommendation to Apollo's higher proposal. The Takeover Panel had set a Friday deadline for both parties to submit firm offers. Castlelake said it remained "very appreciative of the constructive engagement" but would not proceed further.

Founder backing and EU ownership structure

The agreement carries the endorsement of Easyjet founder Stelios Haji-Ioannou, who described Apollo as "one of the most well-resourced and experienced institutional investors in the world" and confirmed his family's intention to remain long-term major shareholders. His support was seen as crucial given his historical influence over the airline's direction.

"The fact that Apollo... has decided to back and grow Easyjet, the leading member of the Easy family of brands, is testament to the strength of the easy brand and the business model of Easygroup,"

Haji-Ioannou said in his first public comments since bid interest emerged.

To satisfy strict European Union ownership rules requiring majority EU control, Apollo will hold 49.9% of the airline. Haji-Ioannou will roll his family's stake into the new parent company, while a further 5% will be placed in an EU trust, ensuring compliance with the bloc's aviation regulations.

Premium pricing and market context

Apollo's offer represents an 81% premium to Easyjet's closing price before either bidder's interest became public, and a 22% premium to the four-year average share price. The valuation underscores the appetite among deep-pocketed private capital for aviation assets with strong brand recognition and recovery potential after the pandemic.

Unlike flag carriers such as British Airways owner IAG or low-cost rivals Ryanair and Jet2, which remain listed, Easyjet's move into private hands could set a precedent for other mid-sized European airlines seeking shelter from public market volatility.

What happens next

The deal remains subject to shareholder approval and regulatory clearances, including competition and foreign investment reviews. Apollo was advised by PJT Partners, Barclays and Citigroup. If completed, the takeover will delist Easyjet from the FTSE 250, ending its 24-year run as a public company since its 2000 flotation. For passengers and staff, the immediate impact is expected to be minimal, with Apollo signalling a strategy of growth and operational investment rather than asset stripping.