LONDON, U.K.: Apollo Global has agreed to acquire European budget airline easyJet in a deal valuing the company at about £5.7 billion (US$7.7 billion), ending months of takeover uncertainty after rival bidder Castlelake withdrew from the race.

The acquisition, announced on August 6, comes as airlines contend with rising costs linked to the war in Iran. EasyJet also becomes the latest London-listed company to be taken private by private equity, continuing a trend driven by lower valuations in the UK market compared with the United States.

"Having carefully reviewed the proposal by Apollo, my family members and I have decided to support the recommended acquisition announced by the easyJet board," easyJet founder Stelios Haji-Ioannou said in a separate statement.

EasyJet's board, advised by Evercore, unanimously recommended the all-cash offer, describing it as fair and reasonable.

"While we remain confident in the strength of our business and the opportunities ahead, we believe this offer appropriately recognizes the quality of the business we have built and delivers immediate, certain and attractive value for shareholders," Non-Executive Chair Stephen Hester said.

Apollo, which manages about $1.05 trillion in assets and has previously invested in Sun Country Airlines, Aeromexico and Atlas Air, said it plans to accelerate easyJet's commercial ambitions, including expanding its fast-growing holidays business, under private ownership.

Castlelake withdrew from the bidding process on August 6 without giving a reason. It had previously submitted five offers before Apollo entered the contest in July with a higher bid that secured the airline board's backing.

The takeover still faces questions about compliance with European Union airline ownership rules, which require easyJet to remain majority-owned and controlled by EU interests to preserve its flying rights within the bloc.

Following the transaction, Apollo expects the Haji-Ioannou family and other continuing shareholders to own between 45.1 percent and 49.9 percent of the purchasing vehicle. An EU management trust will hold up to five percent, while Apollo's funds will own the remainder, up to a maximum of 49.9 percent.

EasyJet's main base is in Britain, and the UK's Civil Aviation Authority said it has been engaging with the parties involved.

Although easyJet shares have risen more than 65 percent since takeover interest first emerged, they were still trading below Apollo's offer price. The bid represents an 81 percent premium to the airline's closing share price on May 28, the last trading day before Castlelake's interest became public.

Analysts said taking the airline private could help shield it from market volatility linked to the war in Iran by reducing pressure from quarterly earnings reporting and giving it greater financial flexibility.