Apollo launches £5.7bn bid for easyJet

Apollo has launched a £5.7bn bid for easyJet, reopening the airline’s takeover process after the US private equity group tabled a higher all-cash offer than Castlelake’s earlier proposal.

easyJet said its board is minded to recommend Apollo’s bid, which values the airline at £7.15 a share. The offer is superior to Castlelake’s latest £6.90-a-share proposal and has displaced a deal that easyJet had previously agreed in principle.

The move puts one of Europe’s best-known low-cost carriers back at the centre of a bidding contest, with shareholders now weighing a higher cash price against the company’s existing strategy, ownership structure and long-term plans.

How the bidding changed

easyJet had been deep in talks with Castlelake before Apollo entered the process with a rival offer. Prior reporting said the Castlelake proposal had already been accepted in principle, but easyJet is no longer minded to recommend it after Apollo stepped in with a stronger approach.

The Financial Times reported that Apollo had secured an agreement in principle for the £5.7bn transaction, while other reports said the board had shifted towards recommending the Apollo offer as the morning of 10 July 2026 progressed.

Apollo’s proposal is being framed as a higher-value all-cash alternative rather than a change in easyJet’s business model. Market coverage put the offer at a large premium to the airline’s recent trading price, underlining how quickly the bid lifted the valuation.

What Apollo is offering

Apollo said it would support easyJet’s existing strategy and management and does not intend to break up the company. It also said shareholders could remain invested rather than being forced to divest if the company were delisted.

The group has also said it would take steps to satisfy EU ownership rules for European airlines. That point matters because airlines based in Europe must remain majority owned by European investors or entities to keep operating rights intact.

Apollo has until 7 August to make a formal offer. Until then, the approach remains a proposal rather than a binding bid.

Why it matters

For easyJet, the offer raises immediate questions about control, valuation and the future of the business. The transaction could affect the airline’s brand, fleet strategy, holidays business and staff if it proceeds.

For shareholders, the key issue is whether Apollo’s higher cash terms are enough to justify backing a change of ownership. For regulators, the focus will be on whether any final structure can meet EU airline ownership requirements.

The outcome is still open. Castlelake could respond with a higher bid or exit the process, while Apollo must decide whether to turn its approach into a formal offer before the deadline.