Low cost airline EasyJet has agreed in principle to a £5.7bn takeover proposal from US investment firm Apollo Global Management, replacing an earlier offer from rival US firm Castlelake.
The airline said Apollo’s proposal provides a better deal for investors compared with Castlelake’s previous offer. EasyJet had accepted Castlelake’s proposal only days earlier but later decided that Apollo’s bid created more value for shareholders.
Apollo Offers Higher Value Deal for EasyJet Investors
Apollo Global Management has offered £7.15 per share for EasyJet, which is higher than Castlelake’s £6.90 per share proposal.
EasyJet said it is no longer planning to move forward with Castlelake’s offer after receiving Apollo’s improved proposal. However, the takeover is not yet final because Apollo still needs to submit a formal offer before the deadline.
Apollo must either confirm a firm bid or withdraw its interest by 17:00 on 7 August. Castlelake has until 3 August to decide whether it will make a formal offer.
EasyJet’s Growth Attracts US Investment Firms
EasyJet has become one of Europe’s largest airlines, operating around 1,200 routes across 35 European countries. The airline employs more than 19,000 people and has built a strong position in the European travel market.
Founded by Sir Stelios Haji-Ioannou in 1995, EasyJet changed the airline industry by making affordable air travel more accessible across Europe. The company launched its first flights between Luton, Glasgow, and Edinburgh in November 1995, followed by international services the next year.
The Haji-Ioannou family still owns around 15% of the airline.
Why Apollo Sees Potential in EasyJet
Industry analysts believe EasyJet is an attractive takeover target because of its strong aircraft fleet, profitable operations, and valuable airport slots.
The airline holds landing and takeoff rights at major airports, including London Gatwick and Paris Charles de Gaulle. These airport slots can reach significant values because airlines often trade them in competitive markets.
Apollo is also expected to focus on EasyJet Holidays, the company’s growing package holiday business. Analysts say holiday packages can generate more stable income and higher profit margins compared with airline ticket sales alone.
Passengers Unlikely to See Immediate Changes
For customers, flights, bookings, and loyalty programmes will continue as normal while the takeover process moves forward.
Experts say the deal could support EasyJet’s future growth, although improving profitability may not automatically result in cheaper fares for passengers.
The takeover proposal still requires regulatory approval and further steps before completion. Until then, EasyJet will continue operating as usual while investors wait for a final decision from Apollo and possible responses from Castlelake.
