# EasyJet shares surge after reaching outline £5.5bn buyout proposal from US firm

By Susannah Streeter — 2026-07-06

Susannah Streeter, chief investment strategist at Wealth Club, said: “EasyJet appears to be on final approach for a move into private ownership after its board indicated it would be minded to recommend a sweetened £5.5 billion takeover offer from US investment firm Castlelake, marking a significant shift after previously dismissing earlier approaches as “highly opportunistic”.

“The latest proposal of 690p a share represents a substantial premium to where the shares were trading before takeover interest emerged and suggests Castlelake has finally reached a price the board believes better reflects the airline’s longer-term value.

“The deal remains subject to a formal offer and regulatory approvals, but if completed it would see one of Britain’s best-known brands leave the London stock market.

“EasyJet has endured a difficult few months, with the conflict in Iran unsettling consumer confidence, pushing up fuel costs and weighing on European travel demand. Those pressures depressed the airline’s share price and created an opportunity that Castlelake clearly believes the market has mispriced.

“The private equity firm, which has deep expertise in aircraft leasing and aviation finance, appears to see long-term value in EasyJet’s modern fleet, strong balance sheet and growing holidays business.

“Private equity ownership would almost certainly usher in a new phase for EasyJet. While being outside the glare of the public markets could give management greater freedom to invest for the long term, private equity investors are typically laser-focused on driving efficiency and boosting returns.

“That can often mean a fresh look at every aspect of the business – from staffing levels and head office costs to supplier contracts and operational spending.

“Employees will inevitably be wondering whether job cuts could follow, while passengers will be watching closely to see whether cost-cutting comes at the expense of customer service.

“The challenge for Castlelake, if a deal goes ahead, will be finding ways to improve profitability without undermining the low-cost airline’s reputation for reliability or denting the customer experience that has helped build one of Europe’s strongest short-haul brands.

“The bid is also the latest example of UK-listed companies becoming attractive targets for overseas buyers, reinforcing concerns about the City of London’s shrinking role as a home for publicly traded businesses.

“If EasyJet leaves the London market, it will add to a growing list of high-profile companies exiting the exchange through overseas acquisitions or private equity takeovers.

“That underlines the continuing valuation gap between UK equities and international peers, with global investors increasingly viewing British companies as attractive takeover targets rather than long-term listed investments.

“The loss of another established public company would be another blow to the depth and diversity of the UK stock market.

“As more established British businesses disappear from the London Stock Exchange, investors seeking exposure to the country’s growth stories may increasingly need to look elsewhere.

“Private markets are becoming home to a growing share of entrepreneurial and fast-growing companies, meaning investors who are able to diversify into carefully selected private assets could gain access to opportunities that are increasingly no longer available on public markets.”

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