EasyJet agrees to £5.7bn takeover by US firm
Developed over time first seen 2 months ago
EasyJet has agreed to a £5.7bn takeover by US investment firm Apollo after rival bidder Castlelake withdrew. The deal could take one of Europe’s largest low-cost airlines off the London stock market, while Apollo says it will support EasyJet’s existing growth strategy and make no job cuts during the first 12 months after completion.
Shareholders would receive £7.15 per share, although analysts noted that this remains below EasyJet’s pre-pandemic share-price highs. The airline employs more than 19,000 people and operates about 1,200 routes in 35 European countries; regulatory approval is still required, including EU ownership compliance, which Apollo expects to meet through EU-based shareholders.
- Apollo agrees £5.7bn takeover of EasyJet.
- No planned job cuts in first year.
- Deal still requires regulatory approval.
New here? Start with this
EasyJet is a British low-cost airline founded in 1995. It sells mainly short-haul flights across Europe and competes with airlines such as Ryanair, Wizz Air and British Airways’ budget-focused services.
Apollo is a large US investment firm that buys and invests in companies, often using funds raised from pension schemes and other investors. A takeover would mean EasyJet’s ownership changing from many public shareholders to Apollo-backed investors, and could lead to its shares no longer being traded on the London stock market.
Airlines are closely regulated because they operate across national borders. EasyJet must continue to meet rules on European ownership and control to keep flying within the EU, while its staff, passengers, suppliers and shareholders could all be affected by any change in ownership.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters argue that Apollo’s £5.7bn offer gives shareholders a clear, immediate valuation in an industry still exposed to fuel costs, economic uncertainty and disruption. They may also see private ownership as allowing EasyJet to invest in fleet, routes and growth with a longer time horizon than public markets permit, while the stated commitment to its strategy and to no initial job cuts offers some reassurance to staff and customers.
The case against
Critics argue that the price may undervalue a major European airline, particularly because it is below EasyJet’s pre-pandemic share-price highs and could limit shareholders’ participation in any future recovery. They may also worry that private-equity ownership could ultimately prioritise financial returns through debt, cost reductions or asset sales after the 12-month employment pledge expires, while foreign ownership and EU compliance add uncertainty for workers, passengers and regulators.