EasyJet accepts Castlelake's £5.5 bn takeover offer

U.S. investment firm Castlelake has reached a principle agreement to acquire British low‑cost carrier EasyJet in a deal valued at up to £5.5 billion (about $7.3 billion). The fifth and highest offer from Castlelake values EasyJet at £6.90 per share, a 24% premium over the July 3 trading price and 73% above the May 29 closing price. EasyJet’s board said it would recommend the proposal to shareholders, pending regulatory approval. The market reacted positively, with EasyJet shares climbing more than 10% to a one‑year high.

The transaction must satisfy EU ownership rules that require at least 51% of an airline operating in the bloc to be held by EU investors. Castlelake plans to partner with European investors—two former airline executives—to meet that threshold while retaining a 49% stake. The offer deadline is 18:00 GMT on 3 August 2026, after which a formal bid must be submitted.

EasyJet employs over 19,000 staff, operates about 1,200 routes in more than 30 European countries, and runs a fleet of roughly 350 Airbus A320 aircraft. Its easyJet Holidays business accounts for a third of profits. The airline reported a pre‑tax loss in the first half of its 2026 fiscal year due to rising jet‑fuel costs linked to Middle‑East tensions. The deal, if completed, would be one of the largest recent privatizations in the European aviation sector.