Apollo Global Management Acquires easyJet in £5.7 Billion Takeover

easyJet Agrees to £5.7 Billion Acquisition by Apollo

easyJet, one of Europe's largest low-cost airlines, has formally agreed to a £5.7 billion takeover by US private equity entity Apollo Global Management. The agreement, announced on 6 August, will see the airline transition back to private ownership.

Apollo's firm offer values easyJet at £7.15 per share, representing an 81% premium over the airline's £3.94 closing price on 28 May, the day before takeover interest became public. The acquisition is being executed through Eagle Bidco, a company indirectly owned by Apollo-managed funds, primarily via a scheme of arrangement.

Shareholders can opt for the cash offer or, if eligible, roll their investment into unlisted shares of easyJet's new parent company. This transaction marks easyJet's departure from the London Stock Exchange, concluding over 25 years as a publicly traded company.

Continuity Plans and Growth Focus Under New Ownership

Apollo Global Management has outlined its immediate intentions for easyJet, emphasising continuity rather than a swift overhaul. The private equity firm confirmed that easyJet will remain a standalone business, retaining its brand, UK headquarters, and its UK, Austrian, and Swiss Air Operator Certificates.

Crucially, Apollo does not intend to implement any material headcount reductions within the first 12 months following the acquisition. Apollo stated it has monitored easyJet for many years, considering it a highly attractive business within the global aviation sector. It identifies easyJet's established brand and extensive network as key assets.

The firm also highlights three ongoing strategic developments it aims to support: the growth of easyJet Holidays, enhancements to ancillary and loyalty products, and the ongoing upgauging of the fleet. Apollo places significant value on easyJet's workforce, believing that retaining key staff is paramount.

Shareholder Support and Regulatory Hurdles Ahead

The acquisition follows a bidding contest where Apollo emerged victorious over fellow American investment firm Castlelake. Castlelake initially approached easyJet in June, submitting five proposals, with its highest offer reaching £6.90 per share.

Apollo entered the process in July with its £7.15 per share offer, leading easyJet's board to withdraw support for Castlelake and unanimously recommend Apollo's higher bid. Castlelake subsequently withdrew from the process on 6 August.

Notably, easyJet founder Sir Stelios Haji-Ioannou, along with Clelia Haji-Ioannou and Polys Haji-Ioannou, has committed to supporting the acquisition. The family has elected to roll approximately 15.31% of their existing easyJet shares into the new privately held structure, demonstrating their intention to remain long-term major shareholders.

The deal still requires several significant approvals, including shareholder consent, court sanction, and regulatory clearances covering aviation licenses, competition, and foreign investment. The transaction is expected to conclude in March 2027.

Apollo's Aviation Portfolio and Future Implications for easyJet

Apollo Global Management, one of the world's largest alternative asset managers, oversees approximately $1.05 trillion in assets as of June 2026. The firm possesses decades of experience in acquiring companies, providing capital, and collaborating with management teams to enhance value.

Aviation is a familiar sector for Apollo, with previous investments including Sun Country Airlines, Aeromexico, and Atlas Air, alongside broader activities in lending and aircraft-related investments. Apollo's interest in easyJet stems from its focus on primary, slot-constrained airports, which it believes generates a meaningful yield premium over ultra-low-cost competitors.

This acquisition shows Apollo's confidence in easyJet's existing strategic foundations. For travellers, this private ownership structure could enable a more agile approach to long-term investment in fleet, network, and customer propositions without the short-term pressures of public markets.

While no immediate route or fare changes are expected due to the commitment against job cuts, the focus on easyJet Holidays and ancillary products suggests potential enhancements in these areas, shaping the airline's competitive position in the European low-cost travel market in the coming years.