LONDON — British low-cost carrier easyJet has agreed to a recommended £5.7 billion ($7.7 billion) cash takeover by US private equity giant Apollo Global Management, taking one of Europe’s largest budget airlines off the public market after more than 25 years.
Under the terms of the agreement confirmed on August 6, 2026, Apollo’s investment vehicle will acquire easyJet for £7.15 per share in cash. The deal represents an 81% premium over the airline’s stock price prior to initial takeover interest in late May.
Apollo’s firm offer prevailed after rival US investment firm Castlelake withdrew from a multi-month bidding contest, choosing not to exceed its previous offer of £6.90 per share.
Ownership Structure and Board Approval
The transaction has received the unanimous recommendation of easyJet’s board of directors, as well as crucial backing from the airline’s founder, Sir Stelios Haji-Ioannou, whose family holds a 15.3% stake.
To satisfy UK and European Union ownership and control regulations—which mandate that EU-operating airlines remain majority-owned by European nationals—the transaction utilizes a structured scheme of arrangement. Under this framework:
- Apollo’s equity stake will be capped at 49.9%.
- Existing European investors, including the Haji-Ioannou family, will retain equity through an unlisted structure alongside an “EU Trust” entity holding up to 5% of voting rights.
- Shareholders have been offered the option to receive the £7.15 cash payout or roll over a portion of their holdings into unlisted shares.
Strategic Direction and Operational Continuity
Apollo indicated that it plans to back easyJet’s existing management team, led by Chief Executive Kenton Jarvis, while accelerating plans for fleet modernization, network expansion, and the growth of its lucrative package holiday division, easyJet Holidays.
The private equity firm confirmed that easyJet will operate as a standalone business, maintaining its primary headquarters in Luton, UK, alongside its existing Air Operator Certificates (AOCs) in the UK, Austria, and Switzerland. Apollo also pledged that no material workforce reductions will take place within the first 12 months of ownership.
“While we remain confident in the strength of our standalone prospects, we believe this offer appropriately recognizes the quality of the business and delivers immediate, certain, and attractive value for shareholders,” said easyJet Chair Stephen Hester.
Subject to shareholder approval, court sanction, and regulatory clearances across multiple jurisdictions, the acquisition is expected to formally complete by the end of March 2027.
Airbus A320-214(w) ‘G-EZWJ’ Easyjet Wikimedia Picture by Alan Wilson from Stilton, Peterborough, Cambs, UK
