Apollo to acquire easyJet in $7.7 billion deal after Castlelake withdraws

American asset management firm Apollo Global Management has agreed to acquire British low-cost carrier easyJet in a deal valuing the airline at approximately $7.7 billion, after rival bidder Castlelake withdrew from the takeover process.

Under the terms of the agreement, easyJet shareholders will receive £7.15 per share, representing a 54% premium to the airline’s closing share price on 27 February, before the escalation of the Middle East conflict. The transaction is expected to close by the end of the first quarter of 2027, subject to shareholder and regulatory approvals.

Shares in the London-listed airline rose around 3% on Thursday following confirmation that Castlelake would not submit a competing offer. The private equity firm had previously improved its bid to approximately $7.3 billion, prompting Apollo to submit a higher proposal.

Apollo said it intends to support easyJet’s long-term growth strategy, while CEO Kenton Jarvis welcomed the agreement, describing Apollo as “a strong partner” with significant aviation sector experience.

easyJet is regarded as one of Europe’s most attractive airline acquisition targets, thanks to its extensive short-haul network, strong brand and valuable airport slots at key airports including London Gatwick, Paris Charles de Gaulle and Geneva.

Apollo partner Alex van Hoek said the carrier has built a leading position in European aviation through its network, customer proposition and brand, adding that the investment demonstrates confidence in easyJet’s future growth and its role in connecting travellers across Europe and the UK.