US private equity firm Apollo has entered the fray for British airline EasyJet, submitting a higher takeover bid that has been accepted by the airline’s board. This move supersedes a previous proposal from rival firm Castlelake, signaling a potential bidding war for the publicly traded company.
The enhanced offer from Apollo indicates a strategic interest in the European aviation sector. EasyJet, a prominent low-cost carrier, has faced recent headwinds, including increased losses attributed to soaring fuel prices earlier this year. The airline’s board has now signaled its preference for Apollo’s bid, pending further regulatory and shareholder approvals.
Under UK takeover regulations, Apollo is required to finalize its offer by August 7. The situation highlights the ongoing consolidation and investment activity within the aviation industry, with private equity firms actively seeking opportunities in established markets.
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