EasyJet Accepts Apollo Takeover Bid, Rejects Prior Castlelake Offer for Airline

EasyJet's board has formally recommended a $1.4 billion (£1.1 billion) takeover offer from US private equity giant Apollo Global Management. This endorsement sees the budget airline reject a rival $1.35 billion bid from US investment firm Castlelake.

Apollo's proposition offers EasyJet shareholders $6.60 per share, representing a 10.7% premium on the airline's closing share price on 19th August. Castlelake's earlier offer had stood at $6.30 per share.

The move follows a period of significant speculation surrounding EasyJet's future ownership. While EasyJet's board stated that Castlelake's offer was 'under consideration', it has now firmly advised shareholders to accept Apollo's higher bid.

Apollo's acquisition of EasyJet would mark a substantial consolidation in the European aviation sector, positioning a major US investment entity at the helm of a prominent European carrier. Such transactions frequently draw scrutiny from competition regulators and raise questions about future operational strategies under new foreign ownership.