Shares in the British low-cost airline EasyJet jumped on Tuesday after reports emerged that a privately owned shipping company based in Switzerland was eyeing a partial or even full takeover of the carrier.
Founded by Greek Cypriot Stelios Haji-Ioannou in 1995, EasyJet has grown to become Europe’s second-largest low-cost airline, although there have been concerns raised about its long-term profitability and growth potential.
Citing three sources who are said to be familiar with the situation, the Italian newspaper Corriere Della Sera reported on Tuesday that MSC Shipping was evaluating a potential takeover of EasyJet.
The MSC Group is otherwise known as the Mediterranean Shipping Company, with a global presence in 155 countries. It remains a privately owned company in the hands of the Italian ultra-wealthy Aponte family, with a fleet of 600 vessels and 100,000 employees.
The company is perhaps best known to the general public for its MSC Cruise division, and while there might not be any obvious synergies between a shipping company and a low-cost carrier, it’s the cruise business that has had MSC considering an airline acquisition for some time.
Back in 2022, MSC joined forces with German flag carrier Lufthansa to put together a takeover bid for ITA Airways, the successor to Italy’s failed national carrier Alitalia.
In the end, MSC decided to pull out of the bid, and Lufthansa eventually acquired a significant stake in ITA Airways on its own.
MSC taking a stake in EasyJet would also seem to be fitting, given that the Haji-Ioannou family acquired their own wealth in shipping, and the airline was created with startup funds that came from this business.
Following Tuesday’s report in Corriere, shares in EasyJet jumped on the London Stock Exchange, although MSC has been quick to distance itself from the rumors. That being said, Corriere was the first to report MSC’s interest in ITA Airways before it was publicly confirmed.
The news comes just weeks after Corriere ran an interview with Michael O’Leary, the chief executive of rival budget airline Ryanair, who questioned EasyJet’s long-term future.
O’Leary suggested that EasyJet was struggling to grow, which would eventually lead to it being broken up into chunks, with different airline groups acquiring operations in the various countries it serves.
For example, O’Leary speculated that British Airways might one day acquire EasyJet’s operations at London Gatwick, while the Air France-KLM Group would take over EasyJet’s businesses in France and Switzerland.
As for what might happen to EasyJet’s significant operations in Italy, O’Leary didn’t comment, although that might be where MSC comes into play.
Although the Haji-Ioannou family remains EasyJet’s largest shareholder, they lost majority control of the business in 2022, with around 70% of shares now owned by institutional investors.
