BP is selling its 65% shareholding in lubricants business Castrol to Stonepeak for an enterprise value of $10.1bn.
The transaction forms part of BP’s focus on core assets and will result in net proceeds of approximately $6bn. It is expected to complete by the end of 2026, subject to regulatory approvals.
BP will retain a 35% stake in a new joint venture, providing exposure to Castrol’s growth and future optionality.
Carol Howle, interim chief executive at BP, said: “We concluded a thorough strategic review of Castrol, that generated extensive interest and resulted in the sale of a majority interest to Stonepeak.
“The transaction allows us to realise value for our shareholders, generating significant proceeds while continuing to benefit from Castrol’s strong growth momentum – and with this, we have now completed or announced over half of our targeted $20bn divestment programme, with proceeds to significantly strengthen bp’s balance sheet.
“We are reducing complexity, focusing the downstream on our leading integrated businesses and accelerating delivery of our plan.”
\Anthony Borreca, senior managing director and co-head of energy at New York-headquartered investment firm Stonepeak, said: “Lubricants are a mission-critical product, which are essential to the safe and efficient functioning of virtually every vehicle, machine and industrial process in the world.
“Castrol’s 126-year heritage has created a leading market position, an iconic brand and a portfolio of differentiated products that deliver meaningful value to its customers.”
The transaction includes minority interests in Castrol, principally in India (49% interest), Vietnam (35%), Saudi Arabia (50%), Thailand (40%) and other jurisdictions.
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