British budget carrier easyJet has reached an agreement in principle to be acquired by U.S. investment firm Castlelake. The deal, announced Sunday, July 5, 2026, values the airline at £5.5 billion on a fully diluted basis and will see Britain's largest low-cost carrier taken private. The final agreed price is £6.90 per share in cash, which represents a 73% premium to easyJet's closing price on May 29. The companies have requested an extension to a deadline to formally complete the deal.
The agreement follows weeks of negotiations and the rejection of four previous takeover bids from Castlelake. Proposals began on June 12 at £5.60 per share, followed by offers of £6.00, £6.25, and £6.50. Although easyJet initially rejected these bids, calling one "cheap," the airline eventually granted Castlelake limited access to internal commercial data in hopes of securing a higher offer before the July 5 deadline. Castlelake previously noted that the deal structure would satisfy EU majority ownership rules.
The acquisition marks a new chapter in the 31-year history of easyJet, which was founded by Stelios Haji-Ioannou to challenge established carriers with low fares. Over the years, the carrier acquired rivals Go Fly and GB Airways and modernized its fleet with 135 Airbus aircraft. The company has faced recent turbulence, including 4,500 job cuts and fleet reductions during the COVID-19 pandemic, as well as warnings of fuel shortages and higher fares caused by conflict in Iran between February and March 2026.