Apollo agrees to buy UK airline EasyJet in $7.7 billion deal as Castlelake withdraws

Apollo Global Management has agreed to acquire EasyJet in a deal valuing the U.K. budget airline at about $7.7 billion, after rival bidder Castlelake withdrew its offer. The announcement lifted EasyJet shares about 3.1% in London, though the stock had already rallied nearly 50% over the prior session as takeover speculation intensified. Under the terms discussed, EasyJet investors would receive £7.15 per share, a 54% premium to the Feb. 27 close before the current Middle East conflict. The deal is expected to close by the end of the first quarter next year. Market reaction reflects optimism that private equity ownership could unlock value from EasyJet’s valuable airport landing slots and network across key European hubs.