EasyJet has reached an agreement in principle with US investment firm Castlelake after the bidder increased its proposed takeover offer to £6.90 per share, valuing the British low-cost carrier at about £5.5 billion (US$7.3 billion).
The UK airline's board said the latest proposal is at a level it would be prepared to recommend to shareholders if Castlelake submits a formal offer. The investment firm now has until August 3 under UK takeover rules to either announce a firm intention to proceed or withdraw its interest.
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July 06, 2026
The new proposal marks a significant change from only two weeks ago, when easyJet rejected four successive approaches and described Castlelake's valuation as an opportunistic attempt to acquire the airline at a discount after its shares weakened amid geopolitical tensions in the Middle East.
Castlelake gradually increased its offer from an initial proposal of about £3 billion before reaching 625 pence per share in June. The latest bid raises the price to 690 pence per share, a premium of roughly 73% over easyJet's share price before the takeover interest became public.
The transaction would take easyJet private if completed. The airline operates a fleet of 355 Airbus A320-family aircraft on more than 1,200 routes across Europe and has become one of the continent's largest low-cost carriers since its launch in 1995.
One of the main hurdles remains European Union ownership rules, which require EU airlines to remain majority owned and effectively controlled by EU nationals. Castlelake previously outlined a structure under which it would hold 49% of the acquisition vehicle, with the remaining stake controlled by European aviation executives Peter Bellew and Mark Breen.
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The negotiations also come at a challenging time for European airlines. Higher fuel prices, geopolitical uncertainty and intense competition have weighed on profitability across the sector, even as passenger demand remains strong.
Founded by Stelios Haji-Ioannou, who remains easyJet's largest shareholder through his family's holdings, the airline has long been viewed as a potential takeover target because of its extensive network and valuable airport slots at airports including London Gatwick, Geneva and Paris.
If the acquisition proceeds, it would become one of the largest airline transactions in Europe in recent years and another example of private equity interest in listed UK companies after falling market valuations attracted new bidders.
