EasyJet dismisses report that EU rules review threatens potential takeover

The head of easyJet has dismissed a report by Reuters suggesting an EU move to tighten its rules on the ownership and control of European carriers could jeopardise a prospective takeover of the airline by US investment fund Apollo.

 

Reuters reported on Wednesday that the EU “aims to clarify permitted corporate structures around airline control and ownership”, suggesting this “could complicate US bids for easyJet”.

 

The news agency reported a review of airline ownership rules “due in the autumn” would aim “to prevent foreign investors from gaining effective control of carriers” and suggested this “could affect Apollo’s proposed £5.7 billion easyJet takeover”.

 

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It quoted an unnamed EC official as saying: “This is to ensure foreign investors don’t have full control.”

 

“We need to make ⁠sure we have sufficient headroom when it comes to control. The concern is that the industry is on the wrong foot, thinking that we no longer enforce the rules strictly.”

 

EU rules require European airlines be at least 51% owned and controlled in Europe if they are to operate freely across member states.

 

The Reuters report triggered a 12% fall in easyJet’s share price which has risen steadily since first reports of a rival bid for the carrier by US investment fund Castlelake in May.

 

Apollo tabled a £5.7 billion bid for the airline earlier this month, topping a £5.5 billion offer by rival fund Castlelake. The easyJet board said it would recommend the Apollo offer to shareholders.

 

EasyJet chief executive Kenton Jarvis confirmed “there is a review” of the respective EU regulation but said the review “covers many issues”, insisting: “This is not new news. The review started in 2025. Airlines have been consulting [on it] for some time.”

 

He pointed out: “An initial proposal is not expected [from the EU] until early 2027, then it will enter a lengthy consultation process.”

 

Jarvis added: “The process is removed from the Apollo and Castlelake bids.”

 

Speaking as easyJet reported third quarter results for the three months to June, Jarvis insisted he was unable to comment on the prospective takeover by Apollo until the deadline for a final bid in August.

 

However, he dismissed the Reuters report, describing it as “business as usual from the EU” and insisting: “Nothing has changed. 

 

“There is a review of lots of topics, not just ownership and control, that started in 2025, and we were well aware of that.”

 

Jarvis added: “We have continuous relations with regulators on many topics and those conversations continue.”

 

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