BP has agreed to sell a 65% stake in its lubricants business, Castrol, to global investment firm Stonepeak for approximately $6 billion. This deal values Castrol at around $10.1 billion, including debt, with BP retaining a minority stake through a joint venture structure. Following this announcement, Castrol India’s shares surged by about 8% in early trade, reaching approximately Rs 201 per share.
The proceeds from this transaction will be entirely used by BP to reduce its net debt, aligning with the company’s goal of lowering debt to $14–18 billion by the end of 2027. As of the third quarter of 2025, BP’s net debt was at $26.1 billion. The agreement also includes BP’s minority interests in Castrol businesses in various countries, such as India, Vietnam, Saudi Arabia, and Thailand, among others.
Upon completion of the transaction, BP will have the right to appoint two board members to the newly formed joint venture. Stonepeak revealed that Canada’s pension fund CPPIB will invest up to $1.05 billion as part of this deal. Castrol India held a 51% stake in Castrol at the end of September, as per exchange data.
This sale is a significant component of BP’s strategy to divest $20 billion worth of assets by 2027. The company’s asset sales aim to address years of underperformance, which had faced criticism from activist investor Elliott Investment Management. BP mentioned that after adjusting for joint venture minority interests and other obligations, Castrol’s total equity value stands at about $8 billion.
Carol Howle, BP’s interim CEO, expressed that the transaction benefits all stakeholders by realizing shareholder value and leveraging Castrol’s growth momentum. Anthony Borreca, Senior Managing Director at Stonepeak, emphasized the critical role of lubricants in ensuring the safe and efficient operation of vehicles, machinery, and industrial processes worldwide.
