Stonepeak, an alternative investment firm specialising in infrastructure and real assets, is to acquire a 65 per cent stake in BP’s Castrol lubricants business for approximately $6bn in a deal that values the unit at $10.1bn.
Under the terms of the deal, BP will retain a 35 per cent interest in Castrol through a newly formed joint venture, allowing the energy major to maintain exposure to the brand’s long-term growth. BP said it may exit its remaining stake after a two-year lock-up period.
Proceeds from the transaction, including around $800m linked to accelerated dividend payments, will be used to reduce debt as BP continues its broader balance sheet repair.
Stonepeak confirmed that Canada Pension Plan Investment Board (CPP Investments) will invest up to $1.05bn as part of the transaction, gaining an indirect minority exposure to Castrol.
The disposal represents the centrepiece of BP’s asset divestment programme, which targets around $20bn of sales by 2027. BP first placed Castrol under strategic review earlier this year as part of a shift away from renewables and towards improving capital discipline and profitability.
The sale process attracted interest from several financial buyers, with Stonepeak emerging as the preferred bidder ahead of private equity rival One Rock.
