British low-cost carrier easyJet has found itself at the centre of a potential takeover battle after U.S. investment giant Apollo Global Management submitted a £5.7 billion offer, equivalent to approximately $7.7 billion, surpassing the competing proposal from Castlelake.

Apollo has offered £7.15 in cash for each easyJet share, around 3.6% more than Castlelake’s £6.90-per-share proposal. EasyJet’s board has therefore withdrawn its previous in-principle support for Castlelake and indicated that it is prepared to recommend the financial terms of Apollo’s offer to shareholders.

The reversal came only days after easyJet announced that it had reached an agreement in principle with Castlelake. The U.S. investment firm first expressed interest in acquiring the airline in May, but easyJet’s board rejected four earlier approaches. Castlelake was only granted access to more detailed company information in late June, after which it increased its offer to £6.90 per share.

Apollo Global Management is a significantly larger and more financially powerful investor than most traditional private equity firms. The company was founded in New York in 1990 by Leon Black, Josh Harris and Marc Rowan. It is now led by Rowan, who serves as chief executive officer and chairman. Apollo operates across private equity, credit, infrastructure, real estate and other forms of alternative investment.

According to the latest available figures, Apollo managed approximately $1.03 trillion in assets at the end of March 2026. The company employs more than 5,600 people across over 26 cities, placing it among the world’s largest alternative asset managers. An important part of the group is Athene, which specialises in retirement savings and insurance products and provides Apollo with a substantial source of long-term capital for investment.

Apollo is no newcomer to the aviation industry. Its funds have invested for years in airlines, aircraft financing, leasing, airport infrastructure and other parts of the sector. One of its best-known investments was the 2018 acquisition of U.S. carrier Sun Country Airlines. Under Apollo’s ownership, Sun Country expanded a business model that combines scheduled passenger services, charter operations and cargo flights for Amazon. The airline was subsequently listed on the stock exchange in 2021.

Apollo has also provided financing to Air France-KLM and Virgin Atlantic. In November 2025, it participated in a $745 million financing arrangement secured against a portfolio of Virgin Atlantic slots at London Heathrow Airport, enabling the airline to fund fleet renewal and further strengthen its balance sheet.

Through Perseus Aviation, Apollo also operates a platform focused on aircraft leasing, financing and asset management. Funds linked to Apollo have additionally participated in an agreement to acquire Air Lease Corporation, one of the world’s largest commercial aircraft lessors. Its experience therefore extends beyond airline ownership to aircraft acquisition financing, sale-and-leaseback transactions and the structuring of long-term fleet-related obligations.

Such expertise could be particularly important for easyJet, which faces a major fleet renewal and expansion programme over the coming years. Analysts at Reuters Breakingviews believe Apollo has an advantage over Castlelake because of its experience with Sun Country Airlines and its ability to finance aircraft and other valuable airline assets.

Apollo and easyJet said in a joint statement that the new proposal offers shareholders a superior outcome because it provides a higher cash value. Eligible shareholders are also expected to receive the option of exchanging part of their existing holdings for a stake in the private vehicle through which Apollo would acquire easyJet, allowing them to retain certain ownership and voting rights.

The U.S. investment firm supports the continuation of easyJet’s current strategy, including capacity growth, further development of easyJet holidays and the retention of key employees and management personnel. Apollo also intends to continue the airline’s fleet modernisation programme, which includes gradually replacing older aircraft with more efficient Airbus models.

EasyJet operates a fleet of more than 350 aircraft and holds strong positions at numerous European airports where additional slots are difficult to obtain. Its established network, recognisable brand and mature business model offer an investor an opportunity to gain immediate access to one of Europe’s largest aviation markets without having to develop a new airline platform from the ground up.

Apollo intends to retain the easyJet name by continuing the existing licensing agreement with easyGroup, the company controlled by founder Stelios Haji-Ioannou. His family is easyJet’s largest individual shareholder, with a stake of approximately 15%, while easyGroup receives a royalty equivalent to 0.25% of the airline’s revenue for use of the brand. The possibility of retaining an ownership interest and continuing the licensing agreement could prove important in securing the support of the Haji-Ioannou family.

The main obstacle to any potential takeover remains European airline ownership and control rules. An airline holding an operating licence issued by an EU member state must be majority-owned and effectively controlled by EU nationals. As both Apollo and Castlelake are U.S. companies, the final ownership structure would have to comply with those requirements.

Apollo has said it is prepared to take all necessary steps to obtain competition approvals and meet European requirements relating to ownership, control and foreign subsidies. Analysts believe both bidders could potentially create a structure capable of receiving regulatory approval, meaning that price and the terms offered to existing shareholders may ultimately determine the winner.

The announcement of Apollo’s proposal triggered a sharp rise in easyJet shares, which gained as much as 16% during trading on July 10 and reached their highest level since February 2022. However, the share price remained below Apollo’s proposed £7.15, indicating that investors were still pricing in the risk of regulatory obstacles or a possible collapse of the negotiations.

Under UK takeover rules, Apollo must announce a firm and binding offer by August 7, 2026, or confirm that it is withdrawing. Castlelake must declare its next move by August 3. Following the emergence of the competing proposal, the company said only that it was considering its options, leaving open the possibility of a further improved bid and a continued battle for control of one of Europe’s largest low-cost airlines.