EasyJet agrees to £5.7bn takeover

EasyJet has agreed to a deal to sell the airline for around £5.7bn ($7.7bn) to a US-based investment firm.

It follows months ‌of uncertainty surrounding one of Europe's biggest low-cost airlines as the industry struggles against surging costs from the Iran war.

The airline is the latest in a string of London-listed companies that have been taken private by private equity firms and largely US companies in recent years as the FTSE 100 share index has traded at a discount to its US counterpart.

Both easyJet and Apollo Global announced the deal on Thursday, after rival to the takeover, Castlelake, dropped out of the running.

"Having ​carefully reviewed the proposal by Apollo, my family members and I have decided to support the recommended acquisition announced by the easyJet board," ​easyJet founder Stelios Haji-Ioannou said in a separate statement after speculation of his approval.

EasyJet's board, advised by Evercore, unanimously ⁠recommended the cash offer, adding that it considered the terms fair and reasonable.

"While we remain confident in the strength of our business and the ​opportunities ahead, we believe this offer appropriately recognises the quality of the business we have built and delivers immediate, certain and attractive value for shareholders," easyJet ​non-executive chair, Stephen Hester, said.

Investment firm, Apollo, which manages about $1.05trn in assets and has previously invested in Sun Country Airlines, Aeromexico and Atlas Air, said it plans to accelerate easyJet's commercial ambitions - including broadening its fast-growing holidays business - under private ownership.

Earlier on Thursday, Castlelake withdrew from the takeover battle, but did not state a reason.

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The firm had tabled five bids ​for easyJet before Apollo entered the race in July, topping Castlelake's £5.5bn proposal and securing the backing of the airline's board.

Questions have been raised by investors and regulators about how Apollo will comply with European Union rules on airline ownership, given easyJet's bases across the bloc.

EasyJet's flying rights within the bloc depend on the ‌airline staying ⁠majority-owned and controlled by EU interests.

Following the deal, Apollo expects Mr Haji-Ioannou's family and other shareholders that remain invested to hold between 45.1% and 49.9% of the ordinary capital of the purchasing vehicle.

An EU management trust will hold up to 5%, and Apollo's funds will hold the rest - up to a maximum of 49.9%.

EasyJet's main base is in Britain and the Civil Aviation Authority said it has contacted the parties involved in the deal.

EasyJet shares, which ​have rallied more than 65% since the ​initial takeover interest was disclosed, ⁠were still trading below Apollo's offer price at 670p by 4.08pm on the day of the announcement.

(c) Sky News 2026: EasyJet agrees to £5.7bn takeover