easyJet Agrees to £5.7 Billion Takeover by US Private Equity Giant Apollo

The board of easyJet has recommended a 5.7 billion pound cash takeover of the airline by the American private equity firm Apollo Global Management, in a deal that would take one of Britain's best known budget carriers off the public market. Apollo has offered 7.15 pounds for each easyJet share, valuing the company's equity at around 5.7 billion pounds.

The price represents a substantial reward for shareholders. According to the terms, the 7.15 pound offer is around 81% higher than easyJet's undisturbed closing share price of 3.94 pounds on 28 May, and roughly 22% above the airline's highest closing price in the preceding four years. For a large, well known carrier, that is a strikingly generous premium.

The agreement caps a hard fought contest for control of the airline. Apollo saw off a rival approach from the investment firm Castlelake, whose final offer of 6.90 pounds per share was topped by Apollo's 7.15 pounds, a difference of 25 pence or about 3.6%. Castlelake then withdrew from the race, and the recommended deal was announced only around 24 hours before the final offer deadline.

What the deal means for easyJet

The airline's board unanimously recommended the offer, concluding that it delivered immediate, certain and attractive value when weighed against the risks of remaining independent. For a business exposed to volatile fuel prices and fierce competition, the certainty of a cash offer at a large premium proved persuasive for directors.

Crucially, the company's founder threw his weight behind the transaction. Stelios Haji-Ioannou, who built easyJet into a European giant, and his family will retain a stake under the new structure. In a statement he said, having carefully reviewed the proposal by Apollo, my family members and I have decided to support the recommended acquisition, lending important backing to the deal.

The ownership arrangements are unusual for a take private. Apollo's holding is to be capped at 49.9%, while a group of continuing shareholders retains up to 5% through a trust structure. Apollo also said it intends to support the airline's existing strategy and plans for long term growth, and committed to keeping easyJet's headquarters in both the UK and the EU.

Part of a wider UK takeover wave

The easyJet deal is far from an isolated case. It is the latest in a striking surge of takeovers targeting London listed companies through 2026, as overseas buyers and private equity firms move to snap up British businesses they regard as undervalued. The pace of dealmaking has run well ahead of recent years.

The scale of that activity is stark. By early June, the number of announced UK takeovers in 2026 had already reached 28, with a combined value of 39.3 billion pounds, comfortably surpassing the 29 billion pounds recorded across the whole of 2025. The average premium offered by bidders stood at around 45%, a powerful incentive for shareholders to sell.

Foreign buyers have dominated the spree. Overseas acquirers accounted for roughly 86% of total deal value, their highest share on record, with buyers from the United States making up about half of the foreign approaches. A combination of relatively cheap London valuations and a weaker pound has made UK companies especially tempting to cash rich international bidders.

What happens next

The transaction is not yet complete. It still requires the approval of easyJet shareholders and clearance from regulators, and the two sides expect the deal to close by the end of March 2027. Until then, the airline continues to operate as a listed company, though its days on the public market now appear numbered.

The timing is notable, coming as European aviation grapples with rising costs linked to conflict in the Middle East. Moving into private hands, away from the quarterly scrutiny of public markets, could give easyJet more room to invest through the cycle, though it also loads the business into the hands of financial owners focused on returns.

Beyond the airline itself, the deal feeds a broader anxiety about the shrinking London stock market. Each departure of a household name to private ownership thins out the pool of investable British companies, and raises pointed questions about why so many UK firms are being valued more highly by private buyers than by the public investors who currently own them.