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EU to Review Airline Ownership Rules, Clouds easyJet Takeover

The review could redefine how non‑EU buyers meet the EU's 51% ownership test, risking delays to bids from Apollo and Castlelake.

Overview

  • Reuters reported on Wednesday that an EU official said Brussels will carry out an autumn review of airline ownership and control rules to protect the bloc's strategic autonomy.
  • The announcement sent easyJet shares sharply lower as investors fear the review could slow or block a purchase by non‑EU private equity firms.
  • EasyJet has signalled support for Apollo's £5.7 billion offer this month, but Apollo has not publicly explained how it would comply with the EU's requirement that airlines be majority owned and effectively controlled by EU nationals.
  • Castlelake has proposed giving 51% to an EU‑national vehicle led by Peter Bellew and Mark Breen as a compliance route, but the EU review could restrict such proxy or trust structures.
  • If regulators tighten the rules it could reshape deal structures across European carriers, affect jobs and route rights, and set a precedent for future private‑equity bids while key takeover deadlines in early August remain unchanged.