• EasyJet agrees to a £5.7 billion takeover by Apollo Global after Castlelake drops out.
• The acquisition aims to enhance EasyJet's commercial ambitions under private ownership.
• The deal is subject to European ownership regulations due to Apollo being a foreign entity.

EasyJet has confirmed a £5.7 billion ($7.7 billion) takeover agreement with US private equity firm Apollo Global, following the withdrawal of rival bidder Castlelake. This decision marks the end of a bidding war that saw Castlelake abandon its pursuit after proposing over £5 billion for the airline, indicating a significant shift in the competitive landscape of low-cost air travel in Europe, according to BBC and Reuters.

The agreed deal has gained unanimous support from EasyJet’s board, who described Apollo's offer as fair and reasonable. Stephen Hester, EasyJet's Non-Executive Chair, noted that the offer "recognizes the quality of the business we have built" and provides immediate value to shareholders, highlighting the merger's potential benefits amid rising operational costs in the aviation sector, according to Reuters and Le Monde.

Apollo aims to leverage its extensive experience in the aviation sector to accelerate EasyJet's growth. The company has previously invested in various airlines, highlighting their commitment to enhancing EasyJet's operational strategies and holiday offerings once the acquisition is finalized. However, regulatory concerns regarding EU ownership rules have emerged, necessitating Apollo to ensure compliance as they maintain significant stakes in EasyJet, according to BBC and Le Monde.