EasyJet agrees to £5.7bn takeover by US firm

What the report says

EasyJet has agreed to be acquired by US private equity firm Apollo in a deal valuing the airline at £5.7bn, according to BBC World News. The announcement came after another bidder, Castlelake, said it was withdrawing from the contest for the budget carrier. Apollo’s offer of £7.15 per share was higher than Castlelake’s final bid of £6.90 per share.

The agreement covers one of Europe’s largest airlines, which operates about 1,200 routes across 35 European countries and employs more than 19,000 people. EasyJet was founded in 1995 by Sir Stelios Haji-Ioannou and began flying later that year from Luton to Glasgow and Edinburgh, with international services following in 1996.

Apollo said it supported EasyJet’s current strategy and saw scope to speed up the group’s operational and commercial plans. The firm described EasyJet as a strong European aviation business with a distinctive customer offer and network. EasyJet chief executive Kenton Jarvis said the company welcomed Apollo’s commitment to its business and staff, and viewed Apollo’s aviation experience as a positive fit.

The deal is significant because it would transfer control of a major low-cost airline to a US investment group at a time when European aviation has been consolidating. More broadly, private equity interest in airlines can reflect expectations of operational improvements, although the final outcome still depends on the completion of the takeover process.