Castlelake Abandons EasyJet Pursuit After Apollo Global Management Bid

Castlelake LP has abandoned its attempt to acquire EasyJet PLC, declining to raise its latest bid of £5.5 billion. The Minneapolis-based investment firm had submitted five escalating bids since late May and reached an agreement in principle with the airline on July 5.

Apollo Global Management subsequently submitted a higher offer of 715 pence per share, valuing the budget carrier at £5.7 billion. EasyJet PLC accepted this offer in principle, leading Castlelake to cede the acquisition attempt. EasyJet PLC shares fell as much as 9.7% following the announcement that Castlelake would walk away.

The airline has recently faced significant financial strain due to rising jet fuel prices linked to the Iran war. These costs contributed to a 70% drop in first-quarter profit before tax.