Apollo’s proposed acquisition of easyJet has drawn opposition from European unions, while easyJet expects the £5.7bn deal to complete by the end of Q1 2027, according to Private Equity Wire.
Unions raise concerns over commitments and resilience
In a scheme document published on Thursday, easyJet said unions across Europe had raised concerns about its ownership structure following the takeover, according to Private Equity Wire.
The European Works Council (EWC) opposed the transaction and argued it could weaken the airline’s long-term resilience and expose employees to risks that existing assurances did not adequately address, according to the same report.
The EWC also said employees had been offered only 12 months of non-binding commitments, according to Private Equity Wire.
Representative bodies in France, Portugal and Spain stopped short of endorsing the acquisition, while bodies in Britain and Germany took a neutral position on its financial terms, the report said.
Ownership and regulatory clearances remain central issues
EasyJet said ownership remains a regulatory hurdle, and Apollo has proposed a governance framework intended to ensure easyJet remains majority-controlled by European interests, according to Private Equity Wire.
The scheme document stated that the transaction could set a precedent for private equity acquisitions of European airlines, according to the report.
EasyJet said it had secured some regulatory approvals in Austria, Britain, France, Germany and Malta, according to Private Equity Wire.
EasyJet said further clearances remain outstanding in those countries and other jurisdictions, the report added.
Apollo’s expansion plan cited in the scheme document
Apollo’s plans include expanding the airline’s offering through a loyalty programme, premium travel products and additional revenue streams intended to increase customer spending, according to Private Equity Wire.
Shareholder process and potential LSE exit
EasyJet plans to hold court and shareholder meetings during the week beginning 9 November to approve the acquisition, according to Private Equity Wire.
EasyJet said completion of the transaction would take the airline off the London Stock Exchange after more than 25 years, the report said.
Widely known context: In the UK, a scheme of arrangement typically involves court and shareholder approval steps as part of the process to implement an acquisition.
