STONEPEAK takes majority stake in CASTROL

Following a comprehensive strategic review of its lubricants subsidiary, British energy major bp has reached a definitive agreement to divest a 65% majority stake in Castrol to alternative investment firm Stonepeak. This corporate carve-out accelerates bp's reset strategy to simplify its downstream portfolio and optimize its asset base. Accordingly, the net cash proceeds will be entirely allocated toward debt reduction. While relinquishing operational control, bp retains a 35% minority interest in a newly incorporated joint venture, maintaining strategic exposure to the brand's performance with the optionality to fully monetize its remaining shares after a two-year lock-up period. or the acquirer, this infrastructure-driven transaction secures a majority position in a defensive, hard-asset enterprise backed by a consistent track record of nine consecutive quarters of year-on-year earnings growth. Stonepeak's post-closing roadmap focuses on driving Castrol's long-term commercial growth across core international manufacturing and distribution hubs, principally in India (via the publicly listed Castrol India Limited), Saudi Arabia, Thailand, and Vietnam. The transaction is scheduled to close by the end of 2026, subject to customary regulatory clearances.