The high-stakes battle to acquire EasyJet has entered a decisive phase after the UK Takeover Panel granted an extension for private equity firm Castlelake to finalize its takeover strategy. Castlelake’s deadline has been moved to August 7, aligning it directly with the schedule set for competing suitor Apollo Global Management. (Reuters)
The alignment paves the way for a dramatic conclusion to weeks of intense rivalry over the British budget carrier. Both investment firms have been granted access to EasyJet’s financial books to complete due diligence as they prepare their final positions.
The corporate contest escalated in July 2026 when Apollo Global Management submitted a £5.7 billion ($7.7 billion) proposal. The £7.15-per-share cash offer represented a 3.6 percent premium over Castlelake’s earlier £5.5 billion proposal (£6.90 per share), prompting EasyJet’s board of directors to swiftly withdraw its support for Castlelake in favor of Apollo’s higher bid.
The bidding war comes during a period of operational turbulence across the aviation sector. EasyJet recently reported a 70 percent drop in third-quarter profits, driven by volatile jet fuel prices and consumer hesitation linked to geopolitical conflicts in the Middle East. Despite these short-term headwinds, institutional investors view the carrier as heavily undervalued compared to its pre-2020 valuation, driving private equity interest in taking the airline private.
Apollo has indicated that it intends to preserve the iconic EasyJet brand and existing operational framework under its ownership proposal. However, complex questions regarding post-takeover ownership structures, regulatory approval hurdles, and exit options for minority shareholders remain key points of discussion as the August 7 deadline approaches.
Both Apollo and Castlelake must announce a firm intention to make an offer or formally walk away by the August 7 cutoff.