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Apollo agrees to take easyJet private in £5.7 billion deal

Apollo agrees to take easyJet private in £5.7 billion deal

Money Moves

US private equity firm wins bidding war for one of Europe's biggest budget airlines after rival Castlelake walks away

Today: easyJet board recommends Apollo's £5.7 billion offer

Overview

easyJet has flown as a London-listed public company since 2000. On August 7, its board unanimously backed a £5.7 billion buyout by US private equity firm Apollo Global Management, a deal that would take the budget airline private and off the London Stock Exchange.

Apollo will pay £7.15 a share, about 81% above easyJet's price before bid interest surfaced. To satisfy rules that keep European airlines under majority-European control, Apollo's stake caps at 49.9%, with selling shareholders including founder Stelios Haji-Ioannou able to roll into a matching holding.

Why it matters

One of Europe's largest low-cost carriers, flying 300-plus jets on 1,200 routes, would pass from public shareholders to American private-equity control.

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Key Indicators

$7.7B
Deal value
Apollo's offer values easyJet's issued and to-be-issued shares at roughly £5.7 billion.
81%
Premium to unaffected price
The £7.15 offer sits far above the £3.94 close before bid interest emerged.
49.9%
Apollo ownership cap
Capped to keep easyJet majority-owned by European nationals under airline licensing rules.
15.31%
Founder family holding pledged
The Haji-Ioannou family gave an irrevocable undertaking to back the deal.
300+
Aircraft in fleet
easyJet flies more than 300 planes on about 1,200 routes across 35 countries.

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People Involved

Organizations Involved

Timeline

June 2026 August 2026

6 events Latest: Today
Tap a bar to jump to that date
  1. easyJet board recommends Apollo's £5.7 billion offer

    Today Deal

    The board unanimously backed Apollo's firm £7.15-a-share offer via Eagle Bidco. The deal is expected to close by the first quarter of 2027.

  2. Castlelake walks away

    Deal

    Castlelake announced it would no longer pursue easyJet, leaving Apollo as the sole bidder.

  3. easyJet switches to Apollo terms

    Deal

    The board reached an agreement in principle with Apollo and dropped its plan to recommend Castlelake.

  4. Apollo enters with a higher bid

    Deal

    Apollo submitted a £7.15-a-share cash proposal, topping Castlelake's price.

  5. Board leans toward Castlelake at £6.90

    Deal

    easyJet said it was minded to recommend Castlelake's improved £6.90-a-share proposal, valuing the airline near £5.5 billion.

  6. easyJet rejects Castlelake's fourth proposal

    Deal

    The board turned down a £6.50-a-share offer from Castlelake but extended the deadline for a firm bid.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

July 2022 - 2023

Apollo's Air France-KLM financing (2022-2023)

Apollo poured billions of euros into Air France-KLM through structured deals, buying into engine assets and a loyalty-linked entity rather than taking equity control. The financing helped the group repair its balance sheet after the pandemic.

Then

Air France-KLM cut debt and Apollo booked steady returns on aviation assets.

Now

Apollo built a template for putting large capital into European airlines without breaching ownership limits.

Why this matters now

The easyJet bid extends that playbook, this time seeking operational control through a capped 49.9% stake.

2020 onward

IAG ownership limits after Brexit (2020-present)

British Airways parent IAG had to prove it stayed majority-owned and controlled by European nationals after the UK left the EU. Qatar Airways held a large minority stake but was kept below control thresholds through ownership structures.

Then

IAG kept its flying rights by capping non-EU voting influence.

Now

The case showed how airlines engineer share structures to satisfy nationality rules.

Why this matters now

Apollo's 49.9% cap and EU trust mirror the same legal problem: an outside owner buying a European carrier without triggering a loss of licences.

2010 - 2016

Stelios versus the easyJet board (2010-2016)

Founder Stelios Haji-Ioannou repeatedly fought easyJet's board over aircraft orders and dividends, using his large shareholding to press for payouts and threaten resolutions. The disputes were public and bitter.

Then

easyJet started paying dividends and slowed some fleet growth.

Now

The founder kept leverage as the biggest shareholder while stepping back from management.

Why this matters now

The same founder now backs a sale and plans to keep a stake, aligning with a buyer instead of fighting the board.

Sources

(7)