EasyJet has extended the deadline for Castlelake to make a firm takeover bid, aligning it with the rival offer from Apollo Global Management. The budget carrier announced on Monday that it remained ready to recommend the Apollo deal to shareholders, which values the airline at £7.15 per share, but would give Castlelake more time to respond.
Deadline Extended for Both Suitors
The extension means both firms must now either table a formal offer for the airline or announce their intention to withdraw by no later than 5pm on August 7. Castlelake's original deadline was August 3. EasyJet said it remains uncertain whether any firm offer will actually materialise, and the announcement was made without the consent of either potential bidder.
The Bidding War So Far
Castlelake had made several approaches to EasyJet before the airline accepted the now-superseded bid that valued the company at roughly £5.5bn. That offer represented a 73 per cent premium to EasyJet's closing price on 29 May, as reported by City AM. Apollo, one of the world's largest asset managers, then stepped in with a higher proposal, prompting the deadline extension.
The bidding war has sent EasyJet shares soaring. Over the past month, the stock has surged more than 40 per cent since the beginning of June, now trading around 623p. Investors are clearly betting on a competitive process that could push the final price higher.
EasyJet's View on Apollo's Offer
In an official statement, EasyJet described Apollo's offer as “an attractive combination of value, strategic alignment and long-term stewardship of the business”. The airline's board has signalled it is prepared to recommend the Apollo deal to shareholders, should it proceed to a formal offer.
A confirmed takeover would see EasyJet exit the London Stock Exchange, making it one of several high-profile British companies to leave the bourse this year. The trend has raised concerns among senior City figures about the attractiveness of London as a listing venue.
Exodus from London Stock Exchange
Earlier in 2026, asset manager Schroders was acquired in a near £10bn deal by American investment firm Nuveen. In June, food giant Tate & Lyle agreed to a £2.7bn takeover by a rival American food company. These deals are part of a broader wave of overseas firms cherry-picking targets from the UK market.
According to industry analysts, the total value of such outbound takeovers is now set to surpass well over £40bn this year. This raises questions about the long-term competitiveness of the London Stock Exchange and the broader UK economy, as some of the country's most established corporate names fall into foreign ownership.
Concerns Over London's Attractiveness
City executives and policymakers have voiced growing unease over the deluge of foreign bids. They argue that London needs to become more attractive for listed companies, with better valuations, regulatory support, and incentives to remain independent. The EasyJet bidding war is likely to intensify that debate, especially if the airline eventually changes hands.
For now, all eyes are on August 7, when both Apollo and Castlelake must decide their next move. If neither tables a firm offer, EasyJet's shares could fall sharply, but if a bidding war erupts further, passengers and investors alike will feel the impact.
