EasyJet set for £5.7bn Apollo takeover after rival bidder walks away

EasyJet is to be bought by private equity firm Apollo in a £5.7 billion deal after rival suitor Castlelake walked away from a bidding war for the budget airline.

Castlelake had previously made a £5.5 billion offer to buy easyJet but saw this surpassed by Apollo last month.

Ahead of a deadline on Friday, Castlelake confirmed it did not intend to make a formal takeover offer, allowing Apollo to progress with its deal.

The move will see the US firm, which also owns Wagamama-owner The Restaurant Group, pay shareholders 715p per share for the business.

The deal, which will require approval at a shareholder vote, is expected to complete in the first quarter of 2027.

EasyJet was founded by Sir Stelios Haji-Ioannou in 1995 to offer a low-cost alternative to British Airways and it has since expanded to be one of the largest networks across Europe.

Sir Stelios and his family, who own around 15% of the business, have given the takeover their support.

“I am pleased with Apollo’s strategic intentions for the easyJet business, which aim to create more growth,” he said.

“My family and I intend to remain invested as long-term major shareholders of easyJet for the next chapter in the company’s journey.”

Sir Stephen Hester, non-executive chairman of easyJet, said: “The easyJet board has carefully evaluated the proposal from Apollo alongside easyJet’s standalone prospects.

“While we remain confident in the strength of our business and the opportunities ahead, we believe this offer appropriately recognises the quality of the business we have built and delivers immediate, certain and attractive value for shareholders.”

Bosses at Apollo said they believe the airline is “one of the most attractive businesses” in the global aviation sector.

Alex van Hoek, partner and European private equity lead at the firm, said: “We are proud to be trusted to play a lead role supporting the easyJet Group in this next phase of its growth and furthering its important contribution to the European and UK aviation sector.”