easyJet Takeover Now A Bidding War

easyJet has now found itself amidst a bidding war that has become one of the biggest takeover battles for an airline in years across Europe.

The bidding war follows an apparent prior deal that was accepted before a rival bid emerged, leaving control of the UK low-cost carrier up in the air.

The twist follows Castlelake’s initial proposal being rejected before a sweeter contract was put forward, and something that directors of the airline agreed in principle, until a rival suitor emerged with a better deal.

Castlelake’s Accepted Offer for easyJet

Castlelake, a US investment firm, was the first party to come forward and express interest in acquiring easyJet, with initial proposals being rejected straight off the bat. However, easyJet was reluctant to shut down and instead sought the best possible deal for itself.

The contract was part of an established transaction, following the airline’s share price on 29 May 2026, before the talks emerged, and the value was then a premium on top of that. On each new deal put forward, there was a steep climb from earlier proposals to the final deal, which the budget carrier accepted as the best value.

In the first week of July, easyJet revealed it had agreed in principle to be acquired by Castlelake, a deal valued at nearly £5.5 billion, ending a month of lengthy negotiations. The price represented a 73% premium over the closing price at the end of May before the interest became public.

Initial undervaluation meant easyJet felt accepting a deal would not have been suitable. The revised figure Castlelake came forward with for the budget airline was felt not just by members of the board but also by analysts to be more appropriate and to stand the best chance of being accepted.

After the revised contract was revealed, both companies moved forward under the takeover rules in the United Kingdom, with an extension requested through to 3 August 2026 at 1700 BST. By that time, the US investment firm needed to either walk away from the deal or announce its firm intention to proceed.

However, the deal accepted by easyJet and looking likely to move forward has taken a turn in recent days, with a new party coming to the table and throwing this budget European carrier into a bidding war.

Now A Bidding War Has Started

It was just as Castlelake’s patience and perseverance had seemingly paid off that things dramatically changed when Apollo, a US giant, came forward with its own valuation of about £5.7 billion, slightly higher than, or in the region of, the pitches from its rival.

While details are still emerging on this front, it puts Apollo firmly in the contest and makes this a multi-bidder race. For easyJet, it’s a win-win scenario with more options giving it time to assess what’s best, even if that’s at a lower figure.

However, the additional bidder also means the board has leverage to push for better terms on price, structure, and commitments on both sides to secure the best contract without pushing either party away. The Apollo bid is a genuine threat to Castlelake and its initial interest, which has been months in the making.

The rising risk of higher bids in the future puts more pressure on the deal as valuations for assets and slots come into play, including notable spots at London Gatwick. There is now greater pressure to firm up proposals, as hesitation could shift momentum toward either the established bidder or a later entrant.

Now, easyJet, while continuing to operate as normal, will have food for thought as the previous bid is finalised and shareholder approval is granted. But with a new bidder in Apollo, this forces further reassessment of what’s next for the budget carrier.