Key Moments
- EasyJet shareholders approved a £5.7 billion ($7.61 billion) takeover by Apollo, one of the largest private-equity deals involving a European airline.
- The company is targeting completion of the transaction before the end of the first quarter of next year, after which it would exit the London stock market.
- Regulatory scrutiny in the European Union and opposition from unions pose key challenges as the deal progresses.
Shareholders Endorse Apollo Offer
EasyJet investors on Wednesday voted in favor of the budget carrier’s proposed £5.7 billion ($7.61 billion) acquisition by Apollo, marking a major milestone for one of the largest private-equity buyouts of a European airline.
The approval moves the transaction closer to completion and positions the company for a transition to private ownership under Apollo.
Planned Timeline and London Delisting
The airline is aiming to finalize the acquisition before the end of the first quarter of next year. Once the deal is completed, easyJet would be removed from the London stock market, ending a public listing that has lasted for more than 25 years.
Regulatory Focus on EU Ownership Rules
Despite shareholder approval, the deal still faces regulatory risks in the European Union. Officials in the bloc are preparing to review airline ownership rules designed to prevent foreign investors from exerting effective control over EU-based carriers.
Although easyJet is headquartered in Britain, it relies on EU operating licences to run bases and routes within the bloc. Under those rules, a majority of its shares must be held by investors based in the EU.
Ownership Structure and Voting Rights
In order to align with EU requirements, easyJet has suspended the voting rights attached to certain shares held by non-EU investors. The company reported that, at the time of Wednesday’s general meeting, 35.07% of its shares were owned by EU persons.
| Metric | Value |
|---|---|
| Deal value | £5.7 billion ($7.61 billion) |
| EU ownership level at meeting | 35.07% |
| Scheme shares voted in favor | 97.07% |
| Voting shareholders supporting deal | 83.29% |
| FX reference | $1 = 0.7492 pounds |
Labor Concerns and Union Pushback
The proposed takeover has triggered resistance from labor representatives. EasyJet is facing opposition from unions, and the European Works Council has raised concerns about the transaction. The body has warned that the structure of the deal could undermine the airline’s resilience and leave employees exposed to risks that have not been fully addressed.
Part of a Broader Buyout Trend
The easyJet transaction is part of a broader pattern of London-listed companies being acquired by predominantly US-based private equity firms in recent years, during a period when the FTSE 100 has traded at a discount to its US benchmark.
Strong Voting Support for Scheme of Arrangement
EasyJet disclosed that 97.07% of scheme shares voted were cast in favor of the acquisition, with 83.29% of voting shareholders backing the deal. This level of support passed the required threshold to move forward with taking the low-cost airline private.
Scheme shares refer to the shares being acquired under a court-approved scheme of arrangement.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
