LONDON — Britain's no-frills airline EasyJet confirmed Thursday a £5.7-billion ($7.7-billion) takeover by US private equity firm Apollo after a rival American firm pulled out of the bidding.

 

"The boards.. are pleased to announce that they have reached agreement on the terms and conditions of a recommended cash acquisition," EasyJet, which flies mainly across Europe, said in a statement.

 

Earlier Thursday, US investment group Castlelake said it did not intend to make a higher offer for the carrier, having proposed to buy the airline for a little over £5 billion.

 

Under UK takeover rules, the two firms had until Friday to table revised bids.

 

"Castlelake confirms that, following careful consideration, it does not intend to make an (improved) offer for EasyJet," the US group said in a statement Thursday.

 

EasyJet last month said that Apollo's informal bid, valued also at £5.7 billion, delivered a "superior outcome" for shareholders compared to the Castlelake proposal.

 

Apollo, which manages more than $1 trillion in assets worldwide, is no newcomer to the aviation sector, having invested in Aeromexico, Sun Country Airlines and Atlas Air -- and provided financing to Air France-KLM and Virgin Atlantic.

 

As a foreign entity, it is unable to take full ownership of the airline outright owing to UK and European rules requiring firms to be majority owned and controlled by regional nationals.

 

However, the US firm had confirmed it would take necessary steps to find a European partner.

 

EasyJet recently said its net profits had plunged in the third quarter as the Middle East war sent jet fuel prices soaring.

 

Profit before tax slumped 70 per cent to £85 million in the April-June period compared to one year earlier.

 

EasyJet was founded by entrepreneur Stelios Haji-Ioannou in the 1990s as Europe's budget airline sector took off.

 

Irish airline Ryanair is Europe's biggest carrier by passenger numbers.