easyJet agrees £5.5bn takeover by US investment firm Castlelake

British low-cost airline easyJet has announced that it intends to accept a €6.4 billion takeover offer from US investment firm Castlelake, in a deal that would see the carrier delisted from the London Stock Exchange and taken private.

The companies said they have reached an agreement in principle and have requested an extension to the deadline to finalise the transaction, following several weeks of negotiations and a series of improved offers.

Under the proposed deal, Castlelake will pay €8.06 per share, valuing easyJet at around €6.4 million. The offer represents an increase from an earlier €7.59-per-share proposal, which easyJet rejected on the grounds that it undervalued the business.

The airline's shares closed at €6.52 on Friday, giving the company a market capitalisation of approximately €4.9 billion before the announcement.

The takeover would deliver a significant windfall for easyJet founder Stelios Haji-Ioannou, whose family retains a stake of more than 15 per cent in the airline.

The proposed acquisition follows a difficult period for easyJet, which issued two profit warnings earlier this year amid weaker bookings and higher fuel costs. The airline also continues to face strong competition from rivals including Ryanair, Wizz Air and Jet2.

Minneapolis-based Castlelake specialises in aviation finance and aircraft leasing. Analysts have suggested the investor could leverage easyJet's fleet alongside its leasing operations, while also exploring opportunities involving the airline's holidays business.

EasyJet operates from 164 airports across 38 countries and employs around 19,000 people. The companies have not announced any plans regarding the airline's workforce. However, Castlelake said it intends to support easyJet's long-term growth and transformation into "a stronger, more resilient European airline" if the transaction is completed.

The airline also has a presence in Malta. In 2024, SR Technics Malta Ltd officially changed its name to easyJet Engineering Malta after being acquired by the airline. The acquisition, first announced in April 2024, received clearance from the Malta Competition and Consumer Affairs Authority before being completed through a share sale and purchase agreement. The rebranded operation continues to provide aircraft maintenance, repair and overhaul services from Malta.