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EasyJet Shares Jump 10% as Airline Agrees in Principle to €5.5 Billion Castlelake Takeover

The bid highlights continued consolidation pressure across European low-cost carriers amid rising fuel costs and compressed margins.
Commercial passenger aircraft at airport runway, representing EasyJet’s airline operations and industry consolidation following private equity takeover agreement.

EasyJet shares surged more than 10% on Monday after the airline confirmed it has agreed in principle to a revised takeover proposal from U.S. private equity firm Castlelake, valuing the carrier at approximately €6.5 billion (£5.5 billion / $7.34 billion).


The offer of €8.15 per share (£6.90) represents a 73% premium to EasyJet’s share price at the end of May, when Castlelake first disclosed its interest. The stock briefly reached a new 52-week high following the announcement.


The agreement remains non-binding, with Castlelake required to submit a formal offer by August 3, 2026, under UK takeover rules. Any final deal would still require shareholder approval. EasyJet’s board has indicated it would be “minded to recommend” the proposal if a firm bid is made.


Castlelake’s approach marks its fifth attempt to acquire the airline after earlier bids were rejected or revised during negotiations. The private equity firm, which manages around €32 billion ($36 billion) in assets and operates extensively in aircraft leasing, has previously indicated a structure designed to comply with EU ownership rules through a consortium model involving European stakeholders.


EasyJet, Europe’s second-largest low-cost carrier, operates more than 350 aircraft across 1,200 routes and has faced recent financial pressure from rising fuel costs, weaker pricing power, and multiple profit warnings. The company reported a €640 million (£552 million) pre-tax loss for the first half of its 2026 fiscal year despite revenue growth.


The proposed transaction comes amid a broader uptick in UK merger activity, as relatively depressed valuations on London-listed companies continue to attract international private equity interest.



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