EasyJet, one of Europe's largest budget airlines, has agreed to a £5.7 billion takeover by Apollo Global Management, a major US private equity and asset management firm, after a rival bidder withdrew from the contest. Apollo's offer of £7.15 per share was accepted by EasyJet's board following the withdrawal of Castlelake, another US investment firm that had been pursuing the airline since May. Apollo had faced a deadline of Friday to submit a formal offer.

The bidding war began in late May when Castlelake made its first approach, initially rebuffed by EasyJet's board on the grounds that the offer undervalued the company. A tentative deal between the two sides was announced in early July, but Apollo then intervened with a higher bid, ultimately winning out. The £7.15-per-share price represents a significant premium over where EasyJet's stock was trading before regional tensions — linked to the conflict involving Iran — weighed on airline valuations, though analysts note it remains well below the company's pre-pandemic peak.

Founded in 1995 by Sir Stelios Haji-Ioannou, EasyJet grew from its first routes between Luton and Scottish cities into a carrier operating around 1,200 routes across 35 European countries, with a fleet of 356 aircraft and more than 19,000 employees. It is the fifth-largest European airline by passenger numbers, behind Ryanair, Lufthansa Group, IAG — which includes British Airways and Iberia — and Air France-KLM. Sir Stelios and his family retain a 15.3% stake and have expressed support for the Apollo deal, saying they intend to remain long-term major shareholders.

Apollo says it is fully supportive of EasyJet's existing strategy and has pledged not to cut any jobs for at least 12 months after the deal closes. The firm indicated that a small number of roles tied to maintaining stock exchange listing requirements could be eliminated if EasyJet is taken private and delisted from the London Stock Exchange. Regulatory approval will be required, including in the European Union, where rules mandate that majority ownership of an EU-operating airline must reside with EU-based shareholders. Apollo says this can be achieved by ensuring the Haji-Ioannou family and other EU investors hold approximately half the business.

The potential delisting of EasyJet from London markets has drawn concern from market observers, who see the loss of a well-known consumer brand as a further blow to the exchange's profile with retail investors. For passengers, Apollo has signalled that service will continue largely unchanged, describing EasyJet as a leader in European aviation with a strong brand and an expansive network it intends to help grow further.