Apollo Global Management agrees to acquire UK carrier EasyJet in a deal valuing the airline at around £5.7 billion
Apollo Global Management has reached an agreement to acquire UK low-cost carrier EasyJet in a transaction that values the airline at approximately £5.7 billion, with shareholders set to receive £7.15 per share. That price represents an 81% premium to EasyJet's unaffected closing share price of £3.94 on 28 May. The deal comes after a rival approach from Castlelake was dropped, leaving Apollo as the agreed buyer. Completion is expected by the end of the first quarter of 2027. EasyJet shares rose on the London market following acceptance of the offer, with the airline now a FTSE 250 constituent after its relegation from the FTSE 100 in March 2026. The transaction marks one of the most significant private equity acquisitions of a listed UK airline in recent memory, bringing a major consumer-facing UK brand into private ownership. Clifford Chance is advising EasyJet, Paul Weiss is advising Apollo, and Macfarlanes is advising founder Sir Stelios Haji-Ioannou and his easyGroup vehicle.
Why this matters
A £5.7 billion take-private of a FTSE-listed UK airline by a major US private equity firm is a landmark transaction for both the aviation sector and the London equity markets. The 81% premium signals that Apollo assessed significant upside in EasyJet's valuation relative to where it was trading, and the fact that a competing bid from Castlelake was withdrawn suggests the process ran through a structured competitive phase before concluding. For the UK market, the delisting of a household consumer brand raises questions about long-term governance, employee obligations, and strategic direction under private ownership. The deal also reflects a broader trend of US private equity capital targeting undervalued UK listed companies, a pattern that has intensified since sterling weakness and post-pandemic aviation sector repricing created attractive entry points.
On the Ground
A transaction of this size activates public M&A, leveraged finance, aviation regulatory, employment, and competition clearance practices simultaneously. Public M&A lawyers would advise on Takeover Code compliance, shareholder circular drafting, and conditions to the offer, while finance teams structure the debt package supporting the buyout. Competition counsel would assess any merger control filings required by the Competition and Markets Authority and relevant aviation authorities. A trainee on this matter would assist with drafting conditions precedent (CP) checklists, preparing Companies House filings upon completion, indexing due diligence reports, and compiling the completion bible once the transaction closes.
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