LUTON — easyJet (U2) faces opposition from employee representatives to Apollo's proposed takeover after publishing its scheme document on October 15. The airline still expects completion before the end of the first quarter of 2027, according to Reuters' report on the employee response and transaction timetable.
The European Works Council argues that the structure threatens easyJet's long-term resilience and leaves employee risks insufficiently addressed. It objects to employment commitments it describes as nonbinding and lasting only 12 months, Reuters reported.
Reuters reported that representative bodies in France, Portugal and Spain also withheld endorsement, while bodies in Britain and Germany took a neutral position on the financial terms.
The October 15 scheme document values easyJet's issued and to-be-issued ordinary share capital at approximately £5.6bn. The cash offer remains £7.15 per share, the same price set out in the August 6 announcement, which quoted approximately £5.7bn.
Employment Assurances Under Scrutiny
In the scheme, Apollo and acquisition vehicle Eagle Bidco say existing contractual and statutory employment rights, including pension rights, will be safeguarded under applicable law.
They state an intention to avoid headcount reductions material to the group for 12 months after completion. However, some headquarters roles linked to easyJet's listed-company status may disappear or shrink. Protecting existing legal rights does not amount to a guarantee that every role will remain.
Apollo's stated commercial priorities include growing loyalty and ancillary revenues and expanding easyJet holidays. The August announcement described support for management's existing strategy, placing those ambitions in a program already under development. Airways previously covered the recommended cash offer of £7.15 per share.
Ownership and Control Remain Separate Tests
The scheme envisages Apollo funds holding up to 49.9% of acquisition holding company Topco's ordinary share capital. Other holders would include rollover shareholders and an EU trust for management incentives. That ordinary-share percentage does not describe every economic interest in the structure.
For EU airlines, the European Commission's guidance on airline ownership and effective control explains that qualifying majority ownership and effective control are separate requirements that must both be met. The assessment reaches beyond share percentages to influence over management appointments, budgets, business plans and major investments. A minority stake therefore does not, by itself, settle the control question.
The scheme says the German merger-control and UK Competition and Markets Authority conditions have been satisfied, along with foreign-investment conditions in Austria, France and Malta. It still lists other regulatory conditions, including aviation-licence requirements where applicable.
The court-convened shareholder meeting and general meeting are scheduled for November 11. Court sanction of the scheme is a separate, later requirement.
Featured image: Lorenzo Giacobbo/Airways
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