Inside UK’s easyJet Deal: Journey ‘from start-up to takeover’ explained
British airline easyJet has agreed in principle to a takeover bid from U.S. investment firm Castlelake that values the carrier at up to £5.5 billion ($7.34 billion). A $7.34 billion deal for U.S. investment firm Castlelake to acquire British budget airline easyJet would mark a new chapter in the carrier’s 31-year history.
As reported, as a potential shakeup for Europe’s aviation sector, the new offer at £6.90 a share represents a 73% premium to easyJet’s closing price on May 29, when the private equity fund manager disclosed its interest in the airline to British regulators, driving the shares up steeply since then.
Timeline of easyJet’s key milestones:
2002
Acquires rival Go Fly.
2007
Acquires rival GB Airways.
2011- 2013
Buys 135 Airbus aircraft, modernising fleet.
2020
COVID-19 forces 4,500 job cuts and shrinking of fleet.
2021
Rejects takeover approach from Wizz Air, raises $1.7 billion from existing shareholders.
February-March 2026
US-Iran conflict hurts airlines globally and easyJet warns of higher fares, fuel shortages.
May 29 2026
Minneapolis-based aviation investor Castlelake discloses it is considering an offer for easyJet.
June 12, 2026
Castlelake privately submits takeover proposal at £5.60 per share.
June 16, 2026
EasyJet rejects Castlelake’s bid.
June 17, 2026
Castlelake returns with £6.00 a share private bid.
June 20, 2026
EasyJet board rejects Castlelake’s second proposal, prompting it to increase private offer to £6.25 a share.
June 21, 2026
*EasyJet rejects Castlelake’s third proposal, calling it “cheap”.
June 22, 2026
Castlelake goes public with its £6.25 a share offer and says the structure would satisfy EU majority ownership rules.
June 23, 2026
Castlelake privately submits fourth offer of £6.50 a share, easyJet later revealed.
June 25, 2026
EasyJet says it has rejected that bid but agrees to share some internal data with Castlelake in hopes of a higher bid. Sets July 5 deadline.
July 5, 2026
EasyJet and Castlelake announce deal in principle at £6.90 a share, valuing the airline at £5.5 billion on a fully diluted basis.
The deal, which would see the U.S. investor take 31-year-old easyJet private, coincides with operating challenges for airlines globally as they grapple with sharply higher fuel prices and profit pressure due to the Iran conflict.
EasyJet in June rejected a £4.93 billion proposal from Castlelake but signalled an interest in continuing talks by granting the private equity manager limited access to the airline’s commercial data. While Castlelake did not disclosed the details about the new deal.
