EasyJet Board Backs £5.2 Billion Castlelake Takeover Offer
EasyJet's board has agreed in principle to a £5.2 billion takeover offer from US investment firm Castlelake at £6.90 per share, marking the fifth bid from the Minneapolis-based private credit company since mid-June. The offer represents a 73 percent premium over EasyJet's share price when Castlelake's interest became public on May 29, and shares jumped nearly 10 percent on the announcement. The deal remains preliminary; Castlelake must submit a formal offer by August 3, 2026, and the transaction requires shareholder approval and regulatory clearance from UK and European authorities. The airline has been facing financial pressure from elevated jet fuel costs and reported a pre-tax loss of £552 million in the first half of 2026 despite revenue growth. Regulatory scrutiny will focus on EU ownership requirements, which mandate that an EU-licensed airline remain majority-owned and controlled by EU nationals, potentially complicating the transaction structure.
Key facts
- EasyJet board agreed in principle to £6.90 per share, valuing the company at £5.2 billion (£5.5 billion fully diluted)
- Castlelake increased its offer five times, starting at £5.60 per share in mid-June 2026
- The offer represents a 73 percent premium to EasyJet's closing price on May 29, 2026
- EasyJet reported a pre-tax loss of £552 million for the six months ending March 31, 2026
- Castlelake must submit a formal offer by August 3, 2026, or walk away
- EU law requires EU-licensed airlines to remain majority-owned by EU nationals
- EasyJet operates 355 aircraft across 38 European countries with 19,000 employees
- Founder Stelios Haji-Ioannou retains approximately 15 percent stake in the airline
Limits of this briefing
The deal remains subject to shareholder approval and regulatory clearance from UK and EU authorities. Coverage focuses primarily on financial and commercial aspects; limited analysis of labor implications, route strategy under private ownership, or competitive impacts on European aviation.
Sources
- Bloomberg: EasyJet Agrees to Castlelake's Latest Bid Topping £5 Billion Centre
- CNBC: EasyJet shares soar 10% as budget airline agrees to $7.3 billion Castlelake takeover Centre
- EUToday: EasyJet Takeover Moves From Speculation to Regulatory Test Centre
- CBS News: EasyJet agrees to $6.7 billion takeover bid from U.S. private equity firm Castlelake Centre
- Head for Points: easyJet agrees £5.2bn takeover bid from US investment house Centre