EasyJet agrees to £5.7bn takeover by US firm
EasyJet has agreed to a £5.7bn takeover by US firm Apollo after a rival bidder dropped out. The airline's shareholders will receive £7.15 per share.
Intelligence analysis by Llama
EasyJet has agreed to a £5.7bn takeover by US firm Apollo. The airline's shareholders will receive £7.15 per share. The takeover was agreed after US investment firm Castlelake withdrew from the bid battle.
EasyJet is a big airline that flies people around Europe. It's been taken over by a US company called Apollo, which wants to help the airline grow. The takeover is a big deal for the airline industry and the UK economy.
Analysis
EasyJet's History and Growth
EasyJet is one of Europe's largest airlines, employing over 19,000 people and flying around 1,200 routes across 35 European countries. It was founded by Sir Stelios Haji-Ioannou in 1995 to offer cheap air fares to Europe from the UK. The airline's first flights took off in November 1995, flying from Luton to Glasgow and Edinburgh, with its first international flights the following year.
The Takeover and Its Implications
The takeover of EasyJet by Apollo is a significant development in the airline industry. Apollo has committed to helping the airline grow and has stated that it does not intend to cut any jobs in the first 12 months after the takeover has been completed. However, if the deal completes and EasyJet delists from the stock exchange to become a private company, some jobs related to maintaining its public-listed operations could go. The firm has stated that this would be a 'limited number of roles in specific areas'.
Regulatory Approval and Impact on the UK Economy
The deal will still need to win approval from regulators, including in the EU where rules mean EasyJet's owners will have to be majority EU-based. Apollo anticipates this can be achieved by making the Haji-Ioannou family, and other EU-based shareholders, owners of around half of the business. The takeover of EasyJet by Apollo is significant for the airline industry and its impact on the UK economy. The airline's shareholders will receive £7.15 per share, which is significantly above where the company's shares were trading before the Iran war, but still woefully short of the company's pre-pandemic highs.
Key points
- EasyJet has agreed to a £5.7bn takeover by US firm Apollo.
- The airline's shareholders will receive £7.15 per share.
- The takeover was agreed after US investment firm Castlelake withdrew from the bid battle.
- Apollo has committed to helping the airline grow and has stated that it does not intend to cut any jobs in the first 12 months after the takeover has been completed.
- The deal will still need to win approval from regulators, including in the EU where rules mean EasyJet's owners will have to be majority EU-based.
If the takeover is successful, EasyJet could grow and become an even more successful airline. This could lead to more jobs and opportunities for people in the UK.
However, if the takeover is not successful, it could lead to job losses and a decline in the airline's performance. This could have a negative impact on the UK economy and the airline industry as a whole.
