The easyJet Takeover: Can Apollo Actually Own a European Airline? | Disruption Banking
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The easyJet Takeover: Can Apollo Actually Own a European Airline?
Tejas Bansal
July 14, 2026
On 10 July 2026 easyJet switched its board recommendation to a £7.15 per share cash offer from US private equity firm Apollo Global Management. The proposed deal values the airline at approximately £5.7 billion and drops support for a rival £6.90 per share bid from Castlelake that the board had backed only days earlier.<br>It looked like a straightforward private transaction. But it has rapidly turned into a bidding war. However, the outcome may have little to do with price. The fundamental question is whether a US buyer can legally own and control a major European airline.<br>The Ownership Problem That Could Ground the Deal<br>EU aviation rules are clear. Any airline operating within the bloc must be majority owned and effectively controlled by EU nationals to retain its operating licences and traffic rights. Both Apollo and Castlelake are American led entities, with Castlelake ultimately controlled by Canada’s Brookfield. This creates a structural barrier that neither bidder has fully resolved on paper.<br>Castlelake proposed placing a 51 percent controlling stake in an EU vehicle fronted by Irish aviation executives. Apollo has committed only to taking “all necessary steps,” including compliance with the EU Foreign Subsidies Regulation, without detailing its ownership structure. In this contest, regulatory approval and creative engineering around ownership and control could matter more than the headline valuation.<br>This uncertainty explains why easyJet shares remain below both offer prices. The market is pricing in meaningful completion risk.<br>How the Bidding War Unfolded<br>Castlelake’s interest surfaced in late May. After four rejections, easyJet opened its books on 25 June. Castlelake raised its offer in stages to £6.90 per share. Apollo’s surprise £7.15 counter-offer on 10 July immediately flipped the board’s recommendation.<br>Under the UK Takeover Code, Castlelake faces a 3 August deadline to make a firm offer or walk away, while Apollo has until 7 August. Shareholders have the option to roll over part of their holdings into the new private company via a stub equity alternative. Apollo has signalled continued support for management, fleet up gauging, and growth in the easyJet holidays segment.<br>Why easyJet Became a Target<br>The bids represent an 81 percent premium to the 28 May closing price, the last trading day before Castlelake’s approach became public. That premium reflects how sharply the shares had fallen after the US Iran conflict drove up jet fuel prices and disrupted bookings. This pressure hit even as first half revenue rose 12 percent to £3.95 billion.<br>easyJet brings real strengths: a fleet of more than 350 aircraft, prime European slots, and an expanding in house holidays business. Analysts, including Bernstein, have warned that realising value at these levels would require “heroic” cost restructuring.<br>Founder Sir Stelios Haji Ioannou ’s family, with roughly 15 percent ownership, benefits from a 0.25 percent royalty on revenue for the easy brand. Apollo’s promise to preserve the easyGroup licence appears aimed at securing this influential shareholder’s backing.<br>A Symptom of the UK Take Private Wave<br>A successful deal would see easyJet leave the London Stock Exchange. It would join a growing list of undervalued UK-listed companies moving into private ownership, often backed by US capital. Strong dollar buyers are taking advantage of compressed valuations in public markets.<br>What Happens Next<br>This remains an agreement in principle, not a binding transaction. Two American suitors, tight August deadlines, unresolved ownership structures, and a sceptical share price suggest more twists ahead. Regulators will scrutinise effective control and foreign subsidies closely.<br>The easyJet process has already forced the market to revalue the airline’s assets. The larger question is whether foreign private equity can navigate European ownership rules to acquire and operate major carriers, or whether regulatory protections will ultimately keep them on the ground.<br>Author: Tejas Bansal<br>See Also:<br>Paul Singer Triggers Honeywell Demerger: Does Breaking Up a Conglomerate Actually Pay? | Disruption Banking<br>Apollo Global’s $5.9 Billion Earnings in 2025: What the Numbers Really Mean | Disruption Banking<br>Apollo Global Management: Why Investors Are Not Worried About Latest Lawsuit | Disruption Banking<br>Tweet<br>Share<br>Share
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