easyJet Agrees to £5.5 Billion Castlelake Takeover Bid

The board of easyJet PLC agreed in principle on July 5, 2026, to a takeover bid from US-based private equity firm Castlelake that would take the British low-cost carrier private. The deal values the airline between £5.2 billion and £5.5 billion, with the board minded to recommend an offer of 690p per share. This fifth proposal follows the rejection of four previous lower bids, the most recent of which was 650p per share.

Shares of easyJet surged nearly 10% on the London Stock Exchange following the announcement. The airline's vulnerability to acquisition was attributed to profit warnings caused by fuel price surges and falling bookings linked to the US-Israeli war on Iran, as well as long-term operational damage from Brexit.

To comply with European Union ownership rules requiring majority control by EU nationals, Castlelake intends to establish a European holding company. Castlelake will hold 49 percent of the vehicle, while EU nationals, including former easyJet COO Peter Bellew and executive Mark Breen, will hold the remainder. Castlelake has committed to supporting the airline's fleet modernization and growth plans rather than breaking up the company.

Under UK takeover rules, Castlelake must submit a formal offer by 5:00 p.m. on August 3, 2026, subject to due diligence and regulatory approvals from UK and EU authorities.