BP has decided to sell 65% of its Castrol lubricants business to the private equity firm Stonepeak for about $6 billion.
BP to sell 65% stake in Castrol for $6 billion.
This sale is part of BP’s larger plan to sell assets worth $20 billion so it can lower its debt and improve returns. After the deal, BP will still own 35% of the new joint venture with Stonepeak, and it will have the option to sell this remaining stake after a two-year lock-in period.
The deal values Castrol at around $10.1 billion. After accounting for minority interests of about $1.8 billion — much of which relates to Castrol India Limited — and around $300 million in other liabilities, the total equity value comes to about $8 billion.
BP’s interim CEO, Carol Howle, said the decision followed a detailed review of the Castrol business and attracted strong interest from buyers. She added that the sale will help simplify BP’s business, strengthen its balance sheet, and support the company’s long-term strategy of improving cash flow and shareholder returns.
