New Delhi, Dec 24: BP is selling a 65% stake in its lubricants business, Castrol, to Stonepeak for approximately $6 billion, valuing Castrol at $10.1 billion including debt.
After the sale, BP will retain a minority stake in a joint venture and will utilize the proceeds to lower its net debt, aiming for a reduction to $14–18 billion by 2027.
The deal includes BP’s minority interests in Castrol businesses globally, and Stonepeak’s investment will be supplemented by Canada’s CPPIB contributing up to $1.05 billion. This divestiture is part of BP’s strategy to sell $20 billion in assets by 2027 in response to criticism over underperformance.
Interim CEO Carol Howle emphasized the transaction’s benefits for stakeholders as it leverages Castrol’s growth potential.
