AeroTime
• Clement Charpentreau
Apollo Global Management will acquire easyJet for £5.7 billion ($7.7 billion), offering £7.15 per share in cash after rival bidder Castlelake abandoned its pursuit. The transaction would take the U.K. budget airline into private-equity ownership as surging fuel prices pressure airline economics.
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easyJet’s £5.7bn takeover battle, ultimately won by Apollo, has focused attention on airline assets trading below book value. Jet2’s roughly £3bn valuation, IAG’s Avios loyalty business and Lufthansa’s repairs arm may also be undervalued, while stake sales could unlock value.
The British Airline Pilots’ Association says it will work with Apollo Global Management and easyJet throughout the airline’s proposed takeover, focusing on preserving pilots’ employment conditions regardless of the company’s future ownership.
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Apollo Global Management will acquire easyJet for £5.7 billion ($7.7 billion), offering £7.15 per share in cash after rival bidder Castlelake abandoned its pursuit. The transaction would take the U.K. budget airline into private-equity ownership as surging fuel prices pressure airline economics.
Unions representing easyJet France cabin crew have filed a strike notice, citing what they describe as deteriorating working conditions. The notice introduces a potential labor disruption for the airline, although the available information does not specify strike dates, demands or the number of employees involved.
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easyJet has extended Castlelake’s deadline to match rival Apollo Global Management, giving both investment funds until Aug. 7 to submit firm offers for full control of the London-listed airline or withdraw. The synchronized deadline sets up a final contest over the British low-cost carrier.
An analysis of recent UK M&A activity—including deals involving easyJet and Rotork—finds that bidders have been extracting more than 50% premiums from targets’ boards. The piece argues that regulation, due diligence expectations, and the UK takeover code help explain why more acquirers do not pursue hostile approaches.
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easyJet reported a 70% fall in third-quarter profit, citing higher fuel prices and weaker booking trends tied to the Middle East conflict. At the same time, an EU review of airline ownership rules is creating uncertainty over Apollo’s proposed acquisition, with concerns it could hinder investors from securing a deal.
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The European Commission is preparing a review of EU airline ownership and control rules aimed at blocking foreign investors from gaining effective control of European carriers, an official told Reuters. The move raises uncertainty around two US investment firms’ takeover bids for easyJet, following a sharp share selloff.
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