EasyJet Nears $7.3 Billion Deal with U.S. Private Equity Giant Apollo

Budget airline EasyJet has signaled it is ready to accept a £5.7 billion takeover bid from American private equity firm Apollo Management, topping a rival offer from another U.S. investor. The Luton-based carrier, which employs over 19,000 people and flies 1,200 routes across 35 European countries, said the Apollo proposal offers shareholders £7.15 per share — a clear improvement over the £6.90 per share offered by Castlelake, a competing U.S. investment firm.

EasyJet’s board said it now considers the Apollo bid “a superior outcome” for investors and is “no longer minded” to support the Castlelake deal, which had been tentatively accepted over the weekend. But the process is far from final. Apollo has until 5:00 p.m. on August 7 to submit a binding offer or walk away, while Castlelake’s deadline to firm up its own bid is August 3. The latest statement does not guarantee a sale.

A key obstacle remains: European Union rules require EasyJet to be majority-owned by EU citizens. Castlelake had proposed partnering with two Irish businessmen, Peter Bellew and Mark Breen, to create an EU-based holding company that would control the airline. Apollo has not yet disclosed how it plans to address that regulatory hurdle. For now, EasyJet’s future hangs on whether either suitor can clear the finish line.