One Rock Capital Partners has surfaced as one of the final contenders for BP’s Castrol lubricants business, as many early suitors retreat and valuation expectations decline, according to a report by Bloomberg citing unnamed sources familiar with the matter.
The US-based mid-market private equity firm is reportedly pursuing a full acquisition of the asset, while Canada Pension Plan Investment Board (CPPIB) is considering only a minority stake. Other prominent firms, including Saudi Aramco, Reliance Industries, Apollo Global Management, Brookfield, Lone Star Funds, and Stonepeak Partners, have dropped out after initial interest.
Bids have reportedly fallen to a $6bn-$8bn range, down from an earlier target of $10bn, suggesting that BP may fall short of its expectations for the sale.
BP has reportedly opened Castrol’s financials to at least one new party not involved in earlier stages of the process, highlighting the oil major’s efforts to keep the process competitive.
The Castrol business, which includes automotive and industrial lubricants, also has a growing presence in AI-driven liquid cooling technologies for data centres. Its Mumbai-listed subsidiary, Castrol India, has a market capitalisation of roughly $2.6bn.
The planned sale is part of CEO Murray Auchincloss’s strategy to streamline BP’s operations and focus more heavily on its core oil and gas businesses. The move is also designed to appease activist investor Elliott Investment Management, which recently acquired a 5% stake and has called for greater urgency in improving BP’s capital allocation and cost efficiency.
