British low-cost airline EasyJet has accepted an improved takeover offer from US direct investment firm Castle Lake. The deal values the company at £5.5 billion (approximately $7.34 billion).
According to a statement from EasyJet, the new offer was set at £6.9 per share. This price represents a 73 percent premium over the closing price on May 29, when Castle Lake first notified UK regulators of its interest. The company's shares have risen significantly since then.
EasyJet had rejected an initial £4.93 billion offer from Castle Lake in June but decided to continue talks. The company granted the US investor limited access to its commercial data, paving the way for the improved offer.
With a fleet of 355 aircraft, EasyJet serves more than 1,200 routes, operating low-cost flights to 38 European destinations. However, the company faces operational pressures due to rising jet fuel prices caused by conflicts in the Middle East.
On the other hand, the potential takeover raises questions regarding EU rules. European Union legislation requires that airlines operating within the bloc be majority-owned and controlled by EU citizens. This is seen as one of the biggest obstacles to completing the deal.
This development comes at a time when record levels of mergers and acquisitions are expected in the UK in 2026, as low valuations of companies listed on the London Stock Exchange attract global investors.