Apollo launches $7.7 billion bid for easyJet, backing over Castlelake offer
APO•Apollo’s higher bid wins easyJet board support
U.S. investment firm Apollo Global Management launched a £5.7 billion ($7.7 billion) bid for easyJet, offering about £7.15 per share. The airline’s board said it would back Apollo’s proposal and withdraw support for Castlelake’s £6.90-a-share offer, which had been agreed in principle only days earlier.
Shares jump as investors weigh value and leverage
easyJet shares rose as much as 16% to £6.8, their highest level since February 2022, though still below Apollo’s offer price. Apollo said it would keep the easyJet brand through the existing licensing agreement with easyGroup and plans to retain key staff and support the airline’s current growth strategy, including its holidays business and fleet modernization.
Takeover battle adds regulatory and timing pressure
Apollo must announce a firm offer by August 7 or walk away, while Castlelake has until August 3. Analysts said any deal could face hurdles because airlines operating in the EU must be majority EU-owned, though Apollo said it would take the necessary steps to secure merger-control and EU subsidy-related clearances.
