British budget carrier easyJet’s shareholders on Wednesday approved the business’ 5.7 billion pound (USD 7.61 billion) takeover by American asset management major Apollo Global Management, thereby clearing an important step for one of the biggest private-equity buyouts of a European carrier.
While the airline is aiming to complete the deal before the end of the first quarter of 2027, the development would result in easyJet leaving the London stock market after more than a quarter of a century.
As per the budget carrier, an overwhelming 97.07% of scheme shares voted were cast in favour, with 83.29% of voting shareholders in support of the deal, thereby comfortably clearing the threshold needed to take the budget airline private.
Scheme shares are those being acquired under a court-approved scheme of arrangement.
However, the takeover faces bigger tests beyond the shores of the United Kingdom.
It will come under the regulatory scanner of the European Union (EU), where officials are preparing a review of airline ownership rules to prevent foreign investors from gaining effective control of the continent’s carriers.
UK-based easyJet is dependent on EU licences to operate bases and routes across the bloc, meaning even in the new ownership structures, a lion’s share of the budget carrier’s stocks must be held by EU-based investors.
To comply with the rules, the airline suspended the voting rights of some shares held by non-EU investors.
It said the level of ownership of shares by EU persons was 35.07% at the time of Wednesday’s general meeting.
EasyJet is also facing opposition from the continent’s labour unions, with the European Works Council (EWC) apprehensive that the deal’s structure could potentially weaken the airline’s resilience and expose employees to unaddressed risks.
In October, a scheme document, published by the low-cost carrier, mentioned the EWC commenting on the M&A deal: “The EWC considers that the transaction, as structured, is likely to weaken easyJet’s long-term resilience and to expose employees across Europe to risks that are neither addressed nor mitigated by the assurances given.”
EWC has also raised concerns about the limited duration and nature of employee protections, noting that the commitments offered by Apollo under the deal were non-binding and would last for only 12 months.
EWC has also found support among the employee representative bodies in France, Portugal, and Spain.
The worker bodies in the United Kingdom and Germany, on the other hand, have adopted neutral positions on the deal’s financial terms.
EasyJet, while taking note of the employee body’s opposition, said it had secured certain regulatory approvals in Austria, Britain, France, Germany, and Malta.
“However, further clearances remain outstanding in those markets and other jurisdictions,” the low-cost carrier said.
Apollo, from its part, has sought to address regulatory concerns through a proposed governance framework intended to ensure that easyJet remains majority-controlled by European interests.
The American asset management major’s strategy involves expanding easyJet beyond its traditional no-frills model by introducing a loyalty programme, developing premium travel products, and creating additional revenue streams.
The objective is to increase customer spending and diversify the airline’s sources of income, potentially strengthening its commercial position in a competitive European aviation market.