EasyJet shares surged more than 10 percent on Monday, July 6, 2026, following an agreement in principle for a buyout proposal from US firm Castlelake valued at up to £5.5 billion.
The Luton-based carrier announced that the £6.90-per-share offer represents the fifth attempt by the American private credit company.
Under City takeover rules, the airline extended the firm bid deadline until 5:00 p. m.
on August 3.
This recommended proposal comes after easyJet rejected four previous offers from Castlelake, which increased from £5.60 to £6.50 per share last month.
The airline had previously resisted the acquisitions, with representatives criticizing the initial approaches as attempts to buy the carrier "on the cheap."
However, easyJet noted on Sunday that Castlelake provided specific assurances regarding its long-term corporate strategy.
The airline stated that the latest offer is "at a value that the board would be minded to recommend to easyJet shareholders."
The American bidder agreed to a strict regulatory framework to guarantee transaction completion.
Castlelake confirmed it would commit to "best endeavours" to obtain all necessary regulatory clearances and approvals.
Discussions also focused on organizational stability and workforce development across Europe.
Castlelake expressed "tremendous respect for easyJet and its people" and its intention to support future growth and transformation into a stronger, more resilient European airline.
The investment firm also backed easyJet's environmental and operational restructuring plans, supporting the fleet modernisation programme as central to long-term competitiveness, efficiency, and sustainability objectives.
The potential transaction follows a trend of British corporations being acquired by foreign entities, including Tate & Lyle's £2.7 billion takeover by US-based Ingredion and Intertek's £9.5 billion acquisition by Swedish investor EQT.
A formal offer remains subject to due diligence and finalized documentation.
