bp to Offload 65% Stake in Castrol to Stonepeak in Landmark $10.1 Billion Deal
#bp #Castrol #Stonepeak #EnergyNews #LubricantsIndustry #Deal #FutureGrowth“Today’s announcement is a very good outcome for all stakeholders. We concluded a thorough strategic review of Castrol, that generated extensive interest and resulted in the sale of a majority interest to Stonepeak. - Carol Howle, interim CEO, bp
December 2025 : Global energy giant bp has officially entered into an agreement to sell a 65% shareholding in its iconic lubricants business, Castrol, to US-based investment firm Stonepeak. The transaction, which values Castrol at an enterprise value of $10.1 billion, marks a defining moment in bp’s “reset strategy.”
The deal is expected to generate total net proceeds of approximately $6 billion for bp. These funds-which include $0.8 billion in pre-payment of future dividend income on bp’s retained 35% stake-will be used exclusively to slash the company’s net debt. As of late 2025, bp is aggressively moving toward a net debt target of $14-18 billion by 2027.
Upon completion, expected by the end of 2026, a new joint venture will be formed. While Stonepeak takes the helm with a 65% controlling interest, bp will remain a strategic partner. This structure allows bp to maintain exposure to Castrol’s robust growth-highlighted by nine consecutive quarters of earnings growth-while retaining the option to sell its remaining stake after a two-year lock-up period.
Carol Howle, interim CEO at bp, emphasized the strategic importance of the move: “Today’s announcement is a very good outcome for all stakeholders. 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. And we are doing so with increasing intensity – with a continued focus on growing cash flow and returns, and delivering value for our shareholders.”
For Stonepeak, the acquisition represents a deep dive into "mission-critical" infrastructure. Anthony Borreca, Senior Managing Director at Stonepeak, noted: “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.”
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