easyJet has agreed to a £5.7bn takeover by US investment firm Apollo Global Management after original bidder Castlelake withdrew from the race.

Apollo made a firm cash offer of £7.15 per easyJet share, which the airline’s board, advised by Evercore, unanimously recommended after concluding that the terms were "fair and reasonable". The shares were trading at 668.6p on 7 August, down 0.21%, remaining below the offer price as investors continued to assess the deal’s regulatory and completion risks.

Kenton Jarvis, CEO of easyJet, said: "We welcome Apollo’s commitment to our business and our people, and believe that its experience in the aviation sector makes it a strong partner for easyJet as we accelerate our growth plans and continue to deliver great value and service for our customers.”

The deal follows a prolonged takeover battle in which Castlelake made five proposals dating back to late May before Apollo stepped in July and ultimately secured board backing. Castlelake had most recently proposed a deal worth around £5.5bn but withdrew on Thursday, in this case the early bird failing to catch the worm.

Apollo, which manages over $1tn in assets, said it intended to accelerate easyJet’s growth strategy, including expanding its fast-growing holidays business. The investment firm said private ownership would give easyJet greater access to capital and allow management to pursue longer-term strategic investments with more flexibility than would typically be possible as a listed company.

Apollo said it had followed easyJet for many years and regarded the airline as “one of the most attractive businesses in the global aviation sector”. It pointed to its previous investments in airlines including Sun Country Airlines, Aeromexico and Atlas Air, arguing that its aviation expertise, global network and access to capital would support easyJet’s next phase of growth.

The proposed ownership structure has been designed to address European Union rules requiring airlines operating within the bloc to remain majority-owned and controlled by EU interests.

Following completion, easyJet founder Stelios Haji-Ioannou and other continuing shareholders are expected to hold between 45.1% and 49.9% of the ordinary capital of the acquisition vehicle. An EU management trust will hold up to 5%, with Apollo’s funds holding the remainder, capped at 49.9%.

Haji-Ioannou and members of his family, who together represent easyJet’s largest shareholder group, have provided irrevocable undertakings to support the transaction and intend to remain invested through the unlisted share alternative.

Sir Stelios Haji-Ioannou said: "Having carefully reviewed the proposal by Apollo, my family members and I have decided to support the recommended acquisition announced by the easyJet board.

"I embarked on the journey of creating the easy family of brands in 1994 when I was 27 years old, starting with easyJet. In 2000, I floated easyJet plc on the London Stock Exchange in order to fund an expansion of the fleet, which has grown from 19 aircraft to 356 as at 31 March 2026. At that time I took the strategic decision to keep the ownership of the easyJet brand in my own private company, easyGroup Ltd.

"I am pleased with Apollo's strategic intentions for the easyJet business, which aim to create more growth. My family and I intend to remain invested as long-term major shareholders of easyJet for the next chapter in the company's journey."

The takeover comes as airlines face higher operating costs and continued uncertainty linked to the conflict in the Middle East. easyJet said its current financial year had been affected by temporary disruption across the sector but remained focused on its medium-term target of generating more than £1bn in profit before tax. The airline said headline profit before tax had increased by about 46% between the financial years ended September 2023 and September 2025, while on-time performance improved by six percentage points and customer satisfaction rose by seven percentage points.

Danni Hewson, head of financial analysis at AJ Bell, said higher jet fuel costs and concerns over summer disruption had created a difficult environment for airlines, making easyJet increasingly attractive to private equity as its share price came under pressure. She said Apollo’s £7.15 offer represented a significant premium to easyJet’s pre-Iran war share price, although it remained well below the airline’s pre-pandemic highs.

Hewson also warned that the transaction faced significant hurdles, particularly European regulatory requirements governing airline ownership, adding that the potential loss of easyJet would be another blow to the London market, arguing that the airline was a well-known company understood by retail investors and that such businesses were difficult to replace once taken private.

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