EasyJet passenger aircraft on the tarmac at London Southend Airport in Southend-on-Sea, U.K., on May 3, 2024.<\/p>\n
Bloomberg | Getty Images<\/p>\n
\u200bBritish budget airline easyJet has agreed to a sweetened takeover bid from U.S. investment firm Castlelake that values the carrier at up to \u00a35.5 billion ($7.34 billion), it said on Sunday, \u2060a \u200cmajor potential shakeup for Europe’s aviation sector.<\/p>\n
The new offer \u2060at \u00a36.90 a share represents a 73% premium to easyJet’s closing price on May 29, when the private equity fund manager first disclosed its interest in the airline to British regulators, driving the shares \u200cup steeply since.<\/p>\n
EasyJet, which operates low-cost routes in 38 European countries, has been grappling with operational challenges as the conflict in Iran has pushed jet \u200bfuel prices sharply higher and squeezed margins for carriers globally.<\/p>\n
Locked in fierce competition with rival Ryanair, the airline had long been viewed as a takeover target with its valuable landing slots at airports including London Gatwick, Paris \u2060and Geneva attractive to potential bidders.<\/p>\n
EasyJet in June rejected a \u00a34.93 billion proposal from Castlelake but \u200csignalled an interest in continuing talks by granting the \u200cprivate equity manager limited access to the airline’s commercial data.<\/p>\n
Analysts had raised questions about whether Castlelake could meet European Union regulations requiring airlines operating in the bloc to be majority-owned and controlled by EU nationals.<\/p>\n
While this was not mentioned in Sunday’s offer, Castlelake previously said it would own 49% of the bidding vehicle, with the remainder held by two EU nationals, former Malaysia Airlines CEO Peter Bellew and senior industry executive Mark Breen.<\/p>\n
EasyJet operates 355 \u200baircraft across more than 1,200 routes and \u200chas struggled to recover since the Covid-19 pandemic. But its package holidays business and efficient Airbus fleet have been bright spots.<\/p>\n
The British market is on course to set a record for mergers and acquisitions in 2026 as weaker valuations among London-listed companies attract buyers. EasyJet initially said Castlelake’s approach \u200bwas “highly opportunistic” as turmoil over the war in Iran \u200cdepressed its shares.<\/p>\n