Apollo Global (NYSE: APO) to Acquire easyJet (LON: EZJ) in £5.7 Billion ($7.7 Billion) Deal

Apollo Global has agreed in principle to acquire easyJet for £5.7 billion. The deal values the UK budget carrier at £7.15 per share, roughly $7.65 billion in total. Apollo Global’s offer beats a rival £6.90 per share bid from Castlelake, agreed just five days earlier. EasyJet shares jumped as much as 15% on July 10, 2026, hitting their highest level since early 2022. The board now favors Apollo Global’s proposal over the Castlelake deal it accepted on July 5.

Inside Apollo Global’s Winning Bid

Apollo Global’s (NYSE: APO) £7.15 per share offer sits 3.6% above Castlelake’s £6.90 proposal. That translates into a premium of 81% over easyJet’s £3.94 closing price on May 28, 2026. The £5.7 billion valuation also sits 22% above the highest level easyJet shares have traded in four years. EasyJet’s board said it is “no longer minded to recommend” the Castlelake agreement. 

Apollo Global now has until 5:00 PM on August 7, 2026, to make a firm offer.

• Apollo Global’s bid: £7.15 per share, valuing easyJet at £5.7 billion.
• Premium offered: 81% above easyJet’s £3.94 close on May 28.
• Regulatory deadline: firm offer required by 5:00 PM, August 7, 2026.
• Share price reaction: easyJet stock rose roughly 15% to about £6.75.

How the Castlelake Bidding War Started

Castlelake first flagged interest in easyJet publicly back in May 2026. It made a formal proposal on June 12, 2026, offering £5.60 per share for easyJet’s 758 million shares. EasyJet’s board rejected that initial approach on June 16, 2026. Talks continued, and Castlelake raised its offer to £6.90 per share, winning board agreement in principle on July 5. Apollo Global’s higher counteroffer arrived just days later, upending the process entirely.

Timeline of the easyJet Takeover Battle

• May 2026: Castlelake announces initial takeover interest in easyJet.
• June 12, 2026: Castlelake proposes £5.60 per share for 758 million shares.
• June 16, 2026: EasyJet’s board rejects Castlelake’s initial proposal.
• July 5, 2026: EasyJet agrees in principle to Castlelake’s £6.90 offer.
• July 10, 2026: Apollo Global tops the bid at £7.15 per share.

Why easyJet Attracted Two Rival Bidders

EasyJet has struggled financially amid rising jet fuel costs tied to the US-Iran conflict. The airline reported a headline loss after tax of £377 million for the six months to March 2026. That loss came in 27% deeper than the same period a year earlier. Revenue still grew 12% to £3.95 billion over that period, showing underlying demand held up. The International Air Transport Association recently warned that global airline profitability could halve this year.

EasyJet weighs $7.7 billion rival takeover offer from Apollo amid Castlelake interest https://t.co/lXQooub5nl

— CNBC (@CNBC) July 10, 2026

What Apollo Global Plans for easyJet’s Future

Apollo Global said it intends to keep easyJet’s brand licence agreement with easyGroup intact. Founder Sir Stelios Haji-Ioannou and his family hold roughly 15.3% of easyJet and collect a royalty on revenue. Apollo Global also backs management’s strategy of upgauging the fleet and growing ancillary revenue streams. 

The firm plans to expand easyJet’s Holidays division under continued private ownership. Eligible shareholders may also get an option to roll holdings into Apollo Global’s private ownership vehicle.

Key Terms Still Under Negotiation

• Stub equity option allowing shareholders to retain indirect ownership stakes.
• Continued brand licensing arrangement with easyGroup and the Haji-Ioannou family.
• Formal offer confirmation required from Apollo Global by August 7 deadline.
• Shareholder and competition regulator approvals are still pending before completion.

Final Thoughts

Apollo Global’s £5.7 billion offer has reshaped what was already a heated takeover battle for easyJet. The 81% premium over May’s closing price shows how much value the private equity firm sees in the airline’s recovery path. With Castlelake still in the picture and an August 7 deadline looming, easyJet’s ownership future remains far from settled.

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice