by Lacey Pfalz
Last updated: 8:25 AM ET, Mon July 6, 2026
British low-cost air carrier EasyJet is getting one step closer to allowing U.S.-based investment firm Castlelake to purchase the airline in a bid worth over £5.2 billion, or $6.9 billion.
According to the BBC, the two sides have agreed "in principle" to a proposal from July 4, under which Castlelake would purchase EasyJet for £6.90 per share.
EasyJet has rejected four other bids by the investment firm this year, accusing Castletake of trying to buy the airline "on the cheap." One of Europe's biggest airlines, it flies 1,200 routes across 35 countries and employs over 19,000 people.
EasyJet said Castlelake had, in this new, more attractive proposal, "emphasized its tremendous respect for EasyJet and its people, along with its intention to support its future growth and transformation to a stronger, more resilient European airline."
Castlelake currently owns 2.14% of the air carrier. The first bid to buy EasyJet came in early June, when the U.S.-Israel war on Iran caused jet fuel prices to surge, and the airline's stocks fell over 30% in a temporary depression.
What Happens Next for the Potential Merger?
While EasyJet sees this new proposal as more favorable, that doesn't mean the deal will be signed, sealed and delivered.
Castlelake will need regulatory approval for the transaction, which could be tricky, as European Union rules require that EasyJet be majority-owned by EU citizens. Previous proposals tackled this hurdle by partnering with aerospace consultant Mark Breen and Peter Bellew, the former chief operating officer of EasyJet, who would both run an EU-based company responsible for the airline.
Castlelake has until August 3, 2026, to announce its intention for an official offer.
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