The EasyJet takeover by US investment firm Apollo has been confirmed after the British low-cost airline agreed to a £5.7 billion ($7.7 billion) cash acquisition.
EasyJet said in a statement on Thursday that its boards had reached an agreement on the terms of the proposed takeover, following the withdrawal of competing US investment group Castlelake.
Rival bidder ends pursuit
Earlier on Thursday, Castlelake announced that it would not submit a higher offer for the airline after previously proposing a bid worth slightly more than £5 billion.
Under UK takeover rules, both companies had until Friday to submit revised offers.
“Castlelake confirms that, following careful consideration, it does not intend to make a revised offer for EasyJet,” the investment group said in a statement.
Apollo expands aviation portfolio
EasyJet said last month that Apollo’s informal offer, also valued at £5.7 billion, represented a “better outcome” for shareholders compared with Castlelake’s proposal.
Apollo, which manages more than $1 trillion in assets worldwide, already has significant experience in the aviation sector.
The investment firm has invested in airlines including Aeromexico, Sun Country Airlines and Atlas Air, while also providing financing to Air France-KLM and Virgin Atlantic.
Ownership rules remain a challenge
As a foreign company, Apollo cannot acquire full ownership of EasyJet under UK and European Union regulations, which require airlines to be majority owned and controlled by nationals of the relevant region.
The EasyJet takeover will therefore need to comply with ownership requirements governing European airlines.
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