Key facts
- Easyjet shares fell nearly 11% amid reports of a potential EU review into foreign ownership of airlines.
- The EU review could jeopardize a mooted takeover of Easyjet, which had agreed terms with Apollo for a £5.7bn deal.
- US markets declined due to fresh US-Iran tensions, while oil prices rose above $95 a barrel.
- FTSE 100 firm Segro indicated it is 'minded to accept' a £14bn takeover offer from US firm Prologis.
- The UK's capital markets have seen 11 takeovers worth over £1bn announced this year.
The FTSE 100 is poised for a flat opening as markets digest geopolitical tensions and await updates from Easyjet, whose shares experienced a significant drop. The budget airline's stock fell nearly 11% on Wednesday after reports surfaced that the European Union is considering a review of its foreign ownership rules for airlines. This potential review, aimed at safeguarding the bloc's strategic autonomy, could jeopardize a previously agreed takeover deal for Easyjet with private equity firm Apollo valued at £5.7 billion. Earlier this month, Easyjet had indicated it was 'minded to accept' a bid from Castlelake.
Meanwhile, US markets closed lower on Wednesday amid renewed tensions between the US and Iran. This geopolitical backdrop contributed to a rise in oil prices, with Brent crude surpassing $95 a barrel for the first time since early June. The increase followed hawkish remarks from Senator Marco Rubio regarding Iran's commitment to peace talks.
In other UK market news, FTSE 100 real estate firm Segro announced it is 'minded to accept' a £14 billion takeover offer from US property giant Prologis. This potential deal underscores a trend of significant takeovers in the UK's capital markets, with facilities management firm Mitie being the latest example, acquired for £3.1 billion. This year has already seen 11 takeovers valued at over £1 billion.