BP to Sell 65% Stake in Castrol to Stonepeak as Part of Asset Divestment Strategy
BP has agreed to sell a 65% stake in Castrol, its lubricants business, to US investment firm Stonepeak. The deal values Castrol at approximately $10.1 billion, including debt. Following the transaction, BP will retain a 35% stake in Castrol through a joint venture.
The proceeds from the stake sale are expected to be around $6 billion, which BP plans to use to reduce its debt, which stood at $26.1 billion at the end of the latest quarter. This deal is part of BP's broader plan to divest about $20 billion in assets aimed at cutting costs, reducing debt, and simplifying its operations.
Castrol serves the automotive and industrial sectors, producing lubricants and cooling fluids, including those used in data centers. The deal is expected to close by the end of next year. BP will have a two-year lock-up period before it can sell its remaining stake, with a separate option to sell after the lock-up expires.
In terms of leadership, Albert Manifold serves as chair, with Meg O’Neill set to take over as CEO in April. Currently, interim CEO Carol Howle is in position following the replacement of Murray Auchincloss.
BP shares rose about 0.3% in early trading following the announcement and are up roughly 6% for the year to date.
