After a pursuit lasting several weeks US investment firm Castlelake is now on the verge of buying UK airline easyJet for £5.2bn after reaching an ‘agreement in principle’. Tony McDonough reports
British low-cost airline easyJet is on the verge of coming under American control after reaching an agreement in principle on a £5.2bn takeover deal.
In early June LBN reported that US investment firm Castlelake was circling Luton-based easyJet, founded by Greek tycoon Sir Stelios Haji-Ioannou in 1995, with a view to buying the business.
Over the course of the last few weeks the board of the stock market-listed airline rejected four takeover offers from Castlelake, which already owns a 2.14% stake in easyJet through funds it manages.
However, easyJet has now issued a statement via the London Stock Exchange saying the board has reached an “agreement in principle” on the key financial terms of a recommended cash offer.
Castlelake now needs to get regulatory clearances and the approvals from easyJet’s shareholders required for the transaction to go ahead. It has until 5pm on August 3 to make a firm offer.
This deal is potentially big news for Liverpool John Lennon Airport from where easyJet operates more than 40 routes. EasyJet has been a key driver of the growth of the airport over the past 30 years. In 2025 LJLA handled a record 5.6m passengers.
In the statement, easyJet said: “Having carefully reviewed it with its advisers, the board of easyJet concluded that the financial terms of the fifth proposal are at a value that the board would be minded to recommend to easyJet shareholders.”
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Along with Ryanair, easyJet has become a dominant force in the UK aviation market, employing more than 19,000 people and operating around 1,200 routes across 35 European countries.
However, there is a view among City analysts that the carrier is not doing as well as it should. Its current market cap is significantly lower than its near £8bn value just over a decade ago. This is why its current value makes it an attractive option. Its fleet of aircraft is also worth around £5bn.