The UK Civil Aviation Authority (CAA) has confirmed that it is engaging with Apollo Global Management over the US investment firm’s proposed takeover of easyJet. The authority emphasised that regulatory compliance is a key part of the process to complete the deal.
Apollo agreed a recommended 5.7 billion GBP cash acquisition of easyJet on 6 August, offering 7.15 GBP per share. The agreement followed the withdrawal of rival bidder Castlelake, bringing an end to a takeover contest that had developed over several months.
The CAA is now considering the implications of the proposed change in ownership for easyJet UK.
A spokesperson for the UK Civil Aviation Authority said:We are aware that Apollo has made an offer to take over easyJet UK. We have engaged with the parties concerned, and they are aware of the regulatory requirements. The parties involved must be able to demonstrate to the Civil Aviation Authority compliance with the relevant regulations.
The CAA’s involvement is significant, as easyJet UK operates under a UK Air Operator Certificate (AOC), alongside the airline group’s operations in Austria and Switzerland. Apollo has committed as part of the proposed transaction to maintaining the location and functions of easyJet’s UK headquarters and its UK AOC.
The transaction also faces regulatory considerations arising from easyJet’s European operations. The airline’s ability to operate intra-European services depends on meeting European Union ownership and control requirements.
To address this, Apollo’s proposed ownership structure would cap the Apollo Funds’ interest at 49.9%. Existing shareholders who elect to roll their investment into the new private company are expected to hold between 45.1% and 49.9%, while an EU Trust would hold up to 5%. The structure is intended to maintain the ownership and control arrangements required for easyJet to retain its European flying rights.
EasyJet founder Sir Stelios Haji-Ioannou and his family, who hold about 15.3% of easyJet, have committed to supporting the transaction and rolling their existing investment into the new ownership structure.
The deal nevertheless remains subject to a number of conditions, including shareholder and regulatory approvals. Completion is currently expected by the end of March 2027.
