Apollo Global Management buys EasyJet for £5.7 billion after Castlelake exits.

EasyJet has agreed to be acquired by Apollo Global Management for £5.7 billion ($7.7 billion) after rival bidder Castlelake withdrew from the process. The announcement was made on Thursday, marking a significant shift in the airline's ownership landscape.

The acquisition comes amid a competitive bidding environment that began in July. Castlelake's exit cleared the way for Apollo, which plans to offer easyJet shareholders £7.15 per share in cash. This price represents a 54% premium compared to easyJet's closing share price on February 27, before acquisition talks started. The deal is expected to close by the end of the first quarter of 2027, pending necessary shareholder and regulatory approvals.

Apollo has committed to supporting easyJet's existing strategy and growth plans while maintaining the airline's headquarters in the UK and the EU. To comply with EU airline ownership regulations, Apollo will not hold more than 49.9% of the airline, with an EU Trust holding up to 5%. EasyJet's founder, Stelios Haji-Ioannou, and his family will retain their shareholding, while existing investors can choose to sell or retain up to 49.9% of their stakes.

The deal has garnered a positive reaction from easyJet's leadership. Chairman Stephen Hester stated that the offer reflects the business's quality and provides immediate value for shareholders. The acquisition is set to reshape easyJet's future and potentially influence the competitive dynamics of the European budget airline market.