The board of British budget airline easyJet has reached an agreement in principle to accept an enhanced £5.5 billion cash takeover proposal from US private investment firm Castlelake.
The revised deal, announced on July 5, 2026, values the carrier at 690p per share, marking a 6% increase from the previous bid and sparking a 10.2% surge in the airline's share price.
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Castlelake now has an extended deadline until August 3, 2026, to formalize its intention to make a firm offer under UK takeover rules, according to reports from Hargreaves Lansdown and interactive investor.
Negotiations and Rejected Bids
The announcement followed weeks of negotiations during which easyJet rejected multiple lower bids from the American private equity firm.
Prior to accepting the latest proposal, the budget airline's leadership had firmly dismissed earlier bids, including a 625p offer that the board described as undervaluing the company.
A subsequent 650p approach softened the board's stance slightly before the weekend consensus was reached.
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The current cash offer represents a significant premium over the airline's market price before recent geopolitical conflicts in Iran disrupted global aviation stocks.
EasyJet's board previously defended its standalone prospects by highlighting a 46% increase in pre-tax profits to £665 million for the two years ending September 2025.
The company also pointed to its fleet upgrade strategy, replacing older A319 aircraft with fuel-efficient A320 and A321 models.
Market analysts from Hargreaves Lansdown noted that easyJet's package holiday division has significantly boosted performance, hitting its £250 million profit target early and contributing over a third of the group's total pre-tax profits.
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EasyJet shares continue to hover around 606.8p, reflecting residual investor uncertainty regarding regulatory clearances for EU ownership rules before the August deadline.
