Budget carrier easyJet confirms 6 6 billion takeover deal
Poinews.com – Budget carrier easyJet confirms 6 6 billion in a major corporate milestone as the low-cost airline announced on Thursday the formal acceptance of a £5.7 billion (€6.6 billion) takeover bid from US private equity firm Apollo Global Management. The boards of both companies “are pleased to announce that they have reached agreement on the terms and conditions of a recommended cash acquisition,” the carrier stated in an official press release. The offer price stands at £7.15 (approximately €8.35) in cash per share for easyJet investors, representing a significant premium over recent trading levels.
The comprehensive deal is expected to be completed by the end of the first quarter of 2027, pending regulatory approvals and shareholder votes. This announcement follows the withdrawal of rival bidder Castlelake, which had been competing for control of the British airline. EasyJet was founded by British-Cypriot entrepreneur Stelios Haji-Ioannou in 1995 as a pioneering no-frills airline offering low-cost fares to destinations across Europe. Since then, the company has grown substantially into one of the continent’s most recognizable budget airlines.
Ownership structure and regulatory compliance
Under the terms of the takeover, Haji-Ioannou and his family will retain an equity stake in a new holding company, ensuring continued involvement in the business they created. Apollo’s shareholding will be capped at up to 49.9% in order to comply with UK and European airline ownership rules, which limit foreign private equity control. An EU Trust will also hold up to 5% of shares to further satisfy regulatory requirements. EasyJet’s first flights operated between London Luton airport – where it is headquartered – and Glasgow and Edinburgh, with the first international routes to Amsterdam, Nice, and Barcelona launching in 1996.
It has gone on to become one of Europe’s biggest airlines, operating a fleet of more than 300 aircraft. The expansion has been remarkable, with the carrier now serving over 150 destinations across Europe and beyond. Industry analysts have noted that the deal reflects growing interest from private equity firms in the aviation sector, particularly as travel demand continues to recover and grow post-pandemic.
The acquisition represents a significant moment for easyJet’s shareholders, who have seen the company navigate through various challenges including the pandemic, fuel price volatility, and changing consumer travel patterns. Apollo Global Management, one of the world’s largest alternative asset managers, has expressed confidence in easyJet’s long-term growth potential and operational efficiency. The firm plans to work closely with existing management to implement strategic initiatives aimed at improving profitability and customer experience.
Employees across easyJet’s operations will see minimal disruption during the transition period, with the company committing to maintain its current workforce and service levels. The budget carrier has also announced plans to continue investing in its fleet modernization program, which includes the introduction of more fuel-efficient aircraft to reduce carbon emissions and operating costs.
Frequently Asked Questions
What is the total value of the easyJet takeover? The takeover bid is valued at £5.7 billion (€6.6 billion), with shareholders receiving £7.15 in cash per share.
When will the deal be completed? The transaction is expected to close by the end of the first quarter of 2027, subject to regulatory approvals and shareholder acceptance.
How much of easyJet will Apollo own? Apollo’s shareholding will be capped at up to 49.9% to comply with UK and European airline ownership regulations.
What happens to Stelios Haji-Ioannou’s stake? Haji-Ioannou and his family will retain an equity stake in a new holding company following the completion of the deal.
