BP sells 65% of Castrol to Stonepeak for $6 billion, retains 35% stake
BP completed the sale of a 65% stake in its lubricants business Castrol to U.S. private‑equity firm Stonepeak for $6 billion. The oil major will keep a 35% minority interest and will use the after‑tax proceeds to cut its net debt. Former Shell chief executive Ben van Beurden was appointed chairman of Castrol’s new board, which also includes directors from Stonepeak and CPP Investments. BP expects the transaction to strengthen its balance sheet ahead of a strategic plan to be outlined in December.
Why it matters
The $6 billion cash infusion will reduce BP’s net debt to about $13.9 billion, meeting its debt‑reduction target a year early (the company says). Retaining a minority stake gives BP exposure to Castrol’s future growth while focusing on its core upstream and downstream businesses.
Key facts
- 1BP sold a 65% stake in Castrol to Stonepeak for $6 billion. aol.com
- 2BP will retain a 35% stake in Castrol and will not expect earnings or dividends from it in the short term. tradingview.com
- 3BP plans to use the $6 billion after‑tax proceeds to reduce net debt, which stood at $13.9 billion at the end of September. globalbankingandfinance.com
- 4Ben van Beurden, former Shell CEO, will chair Castrol’s new board. aol.com
- 5BP’s net debt fell to $13.87 billion in Q3, meeting its debt‑target early. finance.biggo.com
- 6The transaction creates a joint‑venture structure with Stonepeak holding the majority of Castrol. finance.biggo.com
Summary written by AlphAI AI Desk from 17 of 17 sources. Not investment advice. Figures are as stated by the linked sources.