BP to Sell Castrol to Stonepeak
BP to Sell Castrol advances the firm's plan to raise about $20 billion and should shift investor flows toward debt reduction and oil-and-gas.
KEY TAKEAWAYS
- BP agreed to sell a 65% stake in Castrol to Stonepeak for about $6 billion.
- The transaction values Castrol at roughly $10.1 billion enterprise value.
- Proceeds advance BP's plan to raise about $20 billion from asset disposals to reduce debt.
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BP p.l.c. agreed on Dec. 24, 2025, to sell a majority stake in its Castrol lubricants business to Stonepeak. The transaction supports BP’s plan to simplify assets, reduce debt, and refocus on core oil-and-gas operations.
Transaction Terms and Strategic Rationale
Stonepeak will acquire a 65% equity interest in Castrol, valuing the business at about $10.1 billion enterprise value. BP is expected to receive roughly $6 billion in cash proceeds and will retain a 35% minority stake. The companies will form a joint venture led by Stonepeak. Castrol will remain headquartered in the United Kingdom and continue operating under its brand, with BP maintaining significant minority exposure.
The sale advances BP’s goal to raise about $20 billion from asset disposals by the end of 2027. BP intends to use the proceeds primarily to reduce debt and support its core oil-and-gas production. The transaction follows a strategic review of Castrol announced in February 2025 aimed at simplifying the business, cutting costs, and improving shareholder returns.
Stonepeak described Castrol as a global leader in lubricants and positioned the acquisition as an infrastructure-like platform with long-term industrial demand. The firm manages roughly $80 billion in assets across infrastructure and real assets and has been expanding in energy-related sectors. The deal is at the definitive-agreement stage and remains subject to customary closing conditions and regulatory approvals.
