Aleqtsad.
British low-cost airline easyJet has agreed in principle to an improved takeover proposal from U.S. private investment firm Castlelake, valuing the airline at £5.5 billion ($7.34 billion). The agreement follows the airline’s rejection of four previous takeover attempts, while the deal still faces significant regulatory hurdles before it can be completed.
The revised offer values easyJet shares at £6.90 per share, representing a 73% premium to the company’s closing share price on May 29, when Castlelake first disclosed its interest in acquiring the airline. The announcement triggered a sharp rise in easyJet’s share price.
In June, easyJet rejected an earlier £4.93 billion bid from Castlelake but later agreed to continue discussions, granting the U.S. investor limited access to commercial information as part of the due diligence process.
Despite the preliminary agreement, the proposed acquisition remains subject to regulatory scrutiny. European Union rules require airlines operating within the bloc to be majority-owned and effectively controlled by EU nationals, raising questions over whether Castlelake can comply with these ownership requirements.
easyJet operates a fleet of 355 aircraft serving more than 1,200 routes across 38 European destinations. The airline continues to face operational challenges, including higher jet fuel costs driven by recent geopolitical tensions, while the aviation industry is still recovering from the long-term effects of the COVID-19 pandemic.
At the same time, easyJet’s package holiday business and its modern Airbus fleet have strengthened its position and made the company an attractive target for investors.
The airline had previously described Castlelake’s earlier approaches as “highly opportunistic,” arguing that the investor sought to capitalize on a decline in the company’s share price during periods of market uncertainty.
The potential transaction comes as the UK is expected to experience a record year for mergers and acquisitions in 2026, with relatively low valuations of London-listed companies attracting increased interest from international buyers.
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