EasyJet accepts £5.7bn takeover bid from Apollo Global Management amid bidding war

EasyJet has agreed in principle to a £5.7 billion takeover proposal from Apollo Global Management on July 10, 2026. This agreement comes shortly after EasyJet accepted a bid from Castlelake, another investment firm. The airline stated that Apollo's offer provided a "superior outcome" for investors.

Details of the Takeover Offer

The proposed acquisition from Apollo values EasyJet shares at £7.15 each, surpassing the previous offer from Castlelake, which was £6.90 per share. EasyJet, founded in 1995 by Sir Stelios Haji-Ioannou, operates over 1,200 routes across 35 European countries and employs more than 19,000 staff. The bidding war has intensified as analysts highlight EasyJet's profitability and valuable airport slots.

• EasyJet's proposed takeover value: £5.7 billion
• Apollo's offer per share: £7.15
• Castlelake's previous offer: £6.90
• EasyJet's first flights: November 1995

Market Reactions and Future Prospects

Following the announcement, shares in EasyJet surged nearly 15% to approximately 673p. This rise reflects investor confidence in the airline's potential under Apollo's ownership. Susannah Streeter, chief investment strategist at Wealth Club, noted that EasyJet's robust European network and growing holidays business make it an attractive target for acquisition.

Despite the excitement, it remains business as usual for passengers, with current flights and bookings unaffected while the deal undergoes regulatory scrutiny. Apollo faces a deadline of August 7 to submit a firm bid, while Castlelake must do so by August 3.

Regulatory Challenges Ahead

A significant challenge for any takeover is compliance with European Union regulations, which require the airline to be majority-owned by EU citizens. Castlelake proposed a partnership with EU nationals to meet this condition. Apollo has stated it will take all necessary steps to comply with EU regulations.

The competitive nature of this bidding war has led to speculation about whether Castlelake will raise its offer to match or exceed Apollo's bid. As noted by Dan Coatsworth, head of markets at AJ Bell, "the bidding war now comes down to price." Shareholders are keenly watching the developments unfold.