Apollo confirms £5.7 billion easyJet takeover after Castlelake withdraws from bidding war

Apollo wins the bidding contest

Apollo Global Management has agreed to buy easyJet in a recommended cash deal valuing the carrier at about £5.70 billion ($7.7 billion, €6.6–6.7 billion), the companies announced on Thursday, August 6. Apollo's offer of £7.15 per share surpassed the £6.90 per share bid that Castlelake had made public on July 5, which valued the airline at £5.5 billion ($7.41 billion). The easyJet board had already recommended in July that shareholders back the Apollo offer, and on August 6 Castlelake confirmed it would not submit a formal bid, leaving Apollo as the sole suitor.

The boards are pleased to announce that they have reached agreement on the terms of a recommended cash acquisition.

Castlelake's five-proposal pursuit ends

Castlelake, a Minneapolis-based aviation investor, first approached easyJet in early June 2026 with a private proposal of £5.60 per share. EasyJet rejected that bid on June 16, and Castlelake returned the next day at £6.00. After a second rejection on June 20, Castlelake raised its private offer to £6.25, which easyJet also rejected on June 21, calling it "cheap." Castlelake then went public with the £6.25 offer on June 22, before eventually raising to £6.50 and then £6.90 per share. EasyJet had called Castlelake's initial timing "highly opportunistic," noting its share price was temporarily depressed due to the war.

Why easyJet attracted suitors

Apollo said it has followed easyJet for many years and considers the group one of the most attractive companies in the global airline sector, citing its "leading brand," its "extensive network" and its "solid positions in attractive markets." Beyond the brand, easyJet's appeal lies in its valuable takeoff and landing slots at Europe's most congested airports, a substantial owned fleet, a portfolio of aircraft orders with manufacturers, and a dedicated holidays division. EasyJet is Europe's second-largest low-cost airline behind Ireland's Ryanair.

A difficult backdrop for low-cost carriers

The bidding war unfolded against a challenging environment for budget airlines. Rising kerosene prices driven by the Middle East conflict have hit low-cost carriers hard. EasyJet warned in April of a larger first-half loss and said bookings were lagging the previous year due to the war. Its pre-tax profit fell 70% in the third fiscal quarter to £85 million (about $115 million), according to results published in late July. The airline had already cut 4,500 jobs and shrunk its fleet during the COVID-19 crisis in 2020, and rejected a takeover approach from Wizz Air in 2021.

What happens next

The deal is expected to complete in the first quarter of 2027, pending regulatory approvals and shareholder sign-off. EasyJet had recently extended a deadline for both suitors to make a final decision, setting it for 17:00 London time on Friday, August 7. With Castlelake's withdrawal, Apollo faces no competing bid ahead of that deadline. Apollo manages more than $1 billion in assets globally and has previously invested in or financed Aeroméxico, Sun Country Airlines, Atlas Air, Air France-KLM, Virgin Atlantic, LATAM and SAS. EasyJet shares were down 4.8% on the day, having fallen as much as 7% in early London trading.