Apollo Global Management has submitted a proposal to acquire easyJet Group for approximately GBP5.7 billion pounds (USD7.6 billion), outbidding an earlier offer by Castlelake. The LCC group said it agreed in principle on the key financial terms, and would no longer recommend to its shareholders to vote for the Castlelake bid.

"The [Apollo bid] delivers a superior outcome for easyJet shareholders by providing a higher cash value than Castlelake's latest proposal of GBP6.90 [USD9.25] per easyJet share, submitted on July 4, 2026. In addition, the proposed transaction offers the opportunity for eligible easyJet shareholders who participate in the Stub Equity Alternative to have exposure to easyJet’s future growth and long-term value creation potential alongside the Apollo funds. The easyJet Board further believes that the proposed transaction offers an attractive combination of value, strategic alignment and long-term stewardship of the business," the LCC said.

Under the agreed terms, easyJet shareholders would receive GBP7.15 (USD9.60) per share, around 3.6% more than in the Castlelake's bid. However, as an alternative to the cash payout, existing shareholders would be eligible to roll over their stakes into the vehicle through which Apollo would acquire easyJet, effectively remaining shareholders in the airline. The terms of this remain subject to further negotiations.

The US-based fund did not detail how it would comply with EU control and ownership rules, which require that the majority of shares and the effective control of the airline remain with citizens of the bloc. It said that "it will take 'all necessary steps' (insofar as they relate to the easyJet Group) to satisfy any conditions relating to merger control and EU Foreign Subsidies Regulation clearances."

Apollo also explicitly confirmed that it will retain the easyJet brand.

Under UK merger rules, the fund has until August 7 to either submit a binding bid or give up on the deal.

Rival Castlelake, which has sought to buy easyJet with increasingly high bids over the last two months, has agreed with the airline to extend its deadline for a binding offer until August 3. Castlelake's recent proposal, submitted jointly with other co-investors, including Brookfield Asset Management and industry veterans Peter Bellew and Mark Breen, both of them Irish citizens, values easyJet at GBP5.5 billion (USD7.4 billion) on a fully diluted basis.

Apollo owns a 50% stake in Atlas Air Worldwide Holdings (parent of Atlas Air) and a 12% stake in Sun Country Airlines Holdings (until the completion of its takeover by Allegiant Travel).