BP Sells Majority Stake in Castrol to Stonepeak for $6 Billion
BP has sold a 65% stake in its motor oil division, Castrol, to private equity firm Stonepeak for $6 billion in cash. The deal values Castrol at $10.1 billion, with BP retaining a 35% stake in the business. Castrol manufactures lubricants for cars, motorcycles, and industrial vehicles. The proceeds from the sale will be used by BP to pay down debt and strengthen its balance sheet while focusing on its core business. This transaction marks a milestone in BP's strategy to simplify its operations and reduce costs, as part of a broader target to divest $20 billion of assets by 2027. The company is shifting its strategy away from renewables toward oil and gas amid investor pressure concerning profits and share price. Meg O'Neill has been named BP's first female chief executive and will assume the role in April 2026; Albert Manifold was named chairman. The Castrol sale follows other disposals including BP's US onshore wind energy business and its Dutch mobility and convenience arm. Interim chief executive Carol Howle described the deal as a very good outcome for stakeholders, while analyst Russ Mould of AJ Bell called it an early Christmas present for BP shareholders. Shares initially rose on the news but later gave up gains.
