APOLLO MAKES £5.7 BILLION OFFER FOR EASYJET, TOPPING CASTLELAKE BID

Apollo Global Management has entered the bidding contest for easyJet with a £5.7 billion all-cash proposal, topping a rival offer from Castlelake and prompting easyJet's board to shift its recommendation, according to The Guardian and Reuters Breakingviews. The proposed Apollo offer values the British low-cost airline at 715 pence per share, above Castlelake's earlier 690 pence-per-share proposal.

The Guardian reported that easyJet's board said it was "minded to recommend" Apollo's proposal to shareholders after reviewing the offer with financial advisers. The board said it was no longer minded to recommend Castlelake's proposal, which had valued the airline at about £5.5 billion and had been agreed "in principle" earlier in the week after Castlelake raised its bid for a fifth time.

Reuters Breakingviews reported that Apollo's bid gives the U.S. private-capital firm an advantage because it offers a higher cash price and includes a structure that could let some easyJet shareholders retain an interest in the company through a new vehicle. Reuters Breakingviews described that "stub equity alternative" as a potential advantage with founder Stelios Haji-Ioannou and his family, who hold roughly 15% of easyJet.

The Guardian reported that Apollo also intends to preserve easyJet's existing brand-licence agreement with Haji-Ioannou's easyGroup, under which the founder receives royalties from the airline. If the Apollo bid succeeds and Haji-Ioannou sells his stake, he could receive about £855 million, according to The Guardian. Haji-Ioannou had not commented on the takeover attempts at the time of reporting.

Apollo said it supports easyJet's current management and strategy, according to The Guardian. The firm said it backs the airline's plan to strengthen its low-cost carrier model through fleet upgrades, ancillary services, loyalty offerings and expansion of its holidays business. The Guardian reported that Apollo said it was not seeking to break up the company.

Regulatory approval remains a central issue in any easyJet takeover. The Guardian reported that Apollo said it would take all necessary steps to comply with European Union rules on foreign ownership and control of airlines. Reuters Breakingviews reported that EU ownership requirements are one of the main practical hurdles for any buyer because European airlines must remain majority-owned and controlled by EU nationals.

Castlelake said it would consider its options and make a further announcement when appropriate, according to The Guardian. Reuters Breakingviews reported that Castlelake had already improved its proposal several times and had partnered with aviation-sector figures in an effort to address EU ownership requirements. The emergence of Apollo means easyJet shareholders now face a live bidding contest rather than a single-path takeover proposal.

The market reaction was immediate. The Guardian and the Wall Street Journal reported that easyJet shares rose about 14% after Apollo's proposal became public, with the Wall Street Journal saying the stock reached its highest level in four years. The rally reflected investor expectations that Apollo's entry could increase the probability of a completed deal or force further movement in the bidding process.

The immediate question is whether Apollo submits a firm offer by the deadline and whether Castlelake responds with a higher or revised proposal. Reuters Breakingviews reported that Apollo has until August 7 under UK takeover rules to announce a firm intention to bid or walk away. Until then, easyJet remains in a takeover contest shaped by valuation, founder support, EU airline-ownership rules and the buyer's ability to finance a capital-intensive airline strategy.

Fact-check date: 10 July 2026
Article type: News
Sources: The Guardian, Reuters Breakingviews, Wall Street Journal, Bloomberg, CNBC, easyJet and Apollo statements reported by news outlets