EasyJet Apollo Takeover: Shareholders Approve £5.7bn Deal

Shareholders of British low-cost airline easyJet have approved a £5.7 billion ($7.61 billion) acquisition by US private equity firm Apollo Global Management, bringing the carrier closer to a potential departure from the London Stock Exchange after more than 25 years as a listed company.

The approval, secured at shareholder meetings on 11 November 2026, clears a major condition for the proposed transaction. However, the acquisition still requires further regulatory clearances and court approval, with easyJet targeting completion before the end of the first quarter of 2027.

EasyJet said 97.07% of the scheme shares voted at the court meeting supported the transaction, while 83.29% of voting shareholders backed the proposal. The results exceeded the required approval threshold under the proposed scheme of arrangement.

The transaction is among the significant private equity acquisitions involving a European airline and reflects continued interest from US investment firms in UK-listed businesses.

Apollo’s £5.7bn acquisition moves closer after shareholder approval

Apollo’s proposed acquisition values easyJet at approximately £5.7 billion, with the transaction structured as a cash offer through Eagle Bidco, an acquisition vehicle associated with Apollo-managed funds.

The agreement followed a competing approach from US investment firm Castlelake, which ultimately did not proceed with a firm offer.

Apollo’s proposal was accepted by easyJet’s board in August 2026, with the airline’s directors recommending that shareholders support the acquisition.

The proposed transaction offers shareholders 715 pence per share in cash, according to the acquisition documentation and published deal information.

Once completed, the acquisition would take easyJet out of public ownership and end its London stock market listing, which has continued for more than a quarter of a century.

The airline’s operations and brand are expected to continue under the proposed ownership structure. EasyJet has said Apollo intends to retain the easyJet brand and maintain its existing headquarters and operating licences in the UK, Austria and Switzerland.

EU airline ownership rules create a regulatory challenge

Despite shareholder approval, the transaction faces an important regulatory challenge involving European airline ownership and control requirements.

Although easyJet is headquartered in Britain, it operates bases and routes across the European Union and relies on aviation licences that require compliance with EU ownership and control rules.

These requirements generally mean that airlines operating under relevant EU operating licences must be majority-owned and effectively controlled by EU member states or their nationals.

The issue is particularly relevant because Apollo is a US-based investment firm.

EasyJet reported that EU persons held 35.07% of its shares at the time of the November 11 general meeting. The airline also suspended voting rights attached to certain shares held by non-EU investors to comply with applicable ownership requirements.

The proposed transaction must therefore satisfy the relevant aviation ownership and control conditions in addition to the usual acquisition requirements.

The European Commission’s consideration of airline ownership rules could add another layer of scrutiny to the transaction and potentially influence how cross-border investments in European aviation are structured.

Unions raise concerns over employee protection and airline resilience

The proposed takeover has also attracted opposition from employee representatives.

EasyJet’s European Works Council has warned that the transaction’s ownership and financing structure could weaken the airline’s resilience and expose employees to risks that have not been adequately addressed.

The concerns add an employment and operational dimension to the acquisition, particularly as private equity ownership can involve changes to corporate financing, governance and investment priorities.

For airlines, financial flexibility is important because the industry requires substantial expenditure on aircraft, maintenance, airport operations, staffing and network development.

The transaction’s longer-term implications will therefore be assessed not only through its ownership structure but also through how the new shareholder supports the airline’s operational requirements and workforce.

US private equity firms increase interest in UK-listed companies

The easyJet acquisition is part of a wider pattern of London-listed businesses attracting takeover interest from private equity firms, particularly US-based investors.

The Reuters report links this trend to the valuation gap between UK and US equity markets, with the FTSE 100 trading at a discount to its US counterpart.

For private equity investors, listed companies can provide opportunities to acquire established businesses with recognised brands, operating infrastructure and existing customer bases.

The easyJet transaction is particularly significant because it involves an airline with an established European network and exposure to international aviation markets.

However, airline acquisitions differ from transactions involving many other industries because ownership structures must also accommodate national and regional aviation regulations.

This makes the easyJet deal relevant to investors assessing opportunities in regulated transport and infrastructure businesses.

EasyJet targets takeover completion by March 2027

EasyJet is aiming to complete the acquisition before the end of the first quarter of 2027.

The shareholder vote has satisfied important scheme approval conditions, but the transaction remains subject to the remaining conditions, including court sanction and applicable regulatory requirements.

The airline’s official timetable identifies the court sanction hearing as a key stage before the scheme becomes effective.

The completion process will determine when easyJet shares cease trading on the London Stock Exchange and the airline moves into private ownership.

For the aviation industry, the transaction will also provide an important test of how private equity investors can structure acquisitions involving airlines subject to European ownership and control requirements.

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