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Castlelake Confirms It Is Considering Takeover of Easyjet

The US firm's early-stage interest raises questions about ownership rules that could strip Easyjet of EU and UK traffic rights if control leaves local hands.

Overview

  • Castlelake said on Monday that it is thinking about an offer for Easyjet but that the process is at an early stage, there is no certainty a bid will be made, and it has not contacted Easyjet’s board.
  • News of Castlelake’s interest pushed Easyjet’s London share price up about 11 percent and prompted the airline to say it will seek the best possible terms for shareholders.
  • Analysts say EU and UK rules require majority ownership and control by nationals of those jurisdictions to keep flight and landing rights, which means a US-led majority takeover could jeopardise Easyjet’s operating licences.
  • Easyjet has shown financial strain this year, issuing an April profit warning tied to higher kerosene costs and regional conflict, reporting revenue growth but larger winter losses and a wider net loss.
  • Dealmakers are discussing alternative structures such as partial stakes, local control arrangements, or partnerships to square regulatory limits with investor interest, and Easyjet founder Stelios Haji-Ioannou’s roughly 15 percent holding adds a further ownership obstacle.