Apollo has trumped Castlelake to secure an agreement to buy British airline EasyJet in a £5.7 billion (€6.7 billion) deal, in a last-minute twist in the month-long takeover battle for the low-cost airline.EasyJet said on Friday it had reached an agreement in principle for an offer at £7.15 per share and that its board was inclined to recommend the deal to shareholders.Apollo’s move gatecrashed a previously agreed £5.5 billion deal between EasyJet and the US private credit group Castlelake, which had until August 3rd to make a formal offer.“The proposed cash offer delivers a superior outcome for EasyJet shareholders by providing a higher cash value than Castlelake’s latest proposal of £6.90 per EasyJet share,” EasyJet said.Apollo’s intervention marks the latest episode in a protracted takeover saga for EasyJet, which had rebuffed offers from Castlelake for weeks before agreeing to its latest proposal last Sunday.Apollo signalled that it would continue with EasyJet’s current growth strategy, which is centred around a fleet of larger and more fuel-efficient aircraft and growing its holidays business.“Apollo has followed EasyJet for many years and continues to regard it as one of the most attractive businesses in the global aviation sector,” the US investment group said in a statement.EasyJet’s shares rose 14 per cent in early trading on Friday to £6.70.One top shareholder said: “It’s good to see that the market is working in the sense that a number of parties are now seeing what we see: real value in a fantastic network and brand.”They added that they hoped Apollo’s move might spark a bidding war: “What we now hope is there’s competition in this.”Apollo has previously invested in the aviation sector, including Aeromexico, the low-cost carrier, Sun Country Airlines and cargo group, Atlas Air. The group has also provided financing to Air France-KLM and Virgin Atlantic.The latest deal comes after EasyJet rejected four offers from Castlelake, arguing that they undervalued the business, but last month said it would enter talks as it sought a more attractive bid.EasyJet investors had previously told the FT they expected the airline’s board to engage with Castlelake at £7 a share.On Sunday, the two sides came to a preliminary agreement for a cash offer by Castlelake of £6.90 a share, valuing the airline’s equity at about £5.5 billion on a fully diluted basis.With a network of take-off and landing slots at premier European airports and a large order book of Airbus aircraft, EasyJet has long been seen as a possible takeover target.Founded as a low-cost alternative to British Airways, the carrier’s network has grown to become one of the largest in Europe.But its share price has struggled to recover since the Covid pandemic grounded aviation in 2020, and has lagged both its low-cost rival, Ryanair and Aer Lingus owner, IAGThe Apollo offer would also allow existing shareholders to roll their investments into the new business — allowing airline founder Sir Stelios Haji-Ioannou to move into the private business. It also explicitly said that a deal that pays royalties to Haji-Ioannou for the use of the brand would remain.There had been questions over how Castlelake, a US group owned by Brookfield, would comply with European rules that require the majority of both ownership and control to sit within the region.Castlelake had lined up two Irish airline executives to lead a vehicle that would hold 51 per cent of the company, but regulators would still require them to have a source of funds from within Europe to comply with the rules.Like Castlelake, a US group owned by Brookfield, Apollo is likely to face questions over how it would comply with European rules that require the majority of both ownership and control to sit within the region.Castlelake did not immediately respond to a request for comment. - Copyright The Financial Times Limited 2026