BP Sells 65% of Castrol for $6B to Cut Debt


   
   SECAUCUS, NJ (DTN) -- BP is divesting a 65% stake in lubricants maker 
Castrol to private equity firm Stonepeak for $6 billion to reduce its net debt, 
according to news releases on the deal issued Wednesday (12/24).

   The oil major said it aims to cut borrowings to between $14 billion and $18 
billion by 2027, down from the $26.1 billion reported for the third quarter.

   Stonepeak said it will get a majority interest in a 126-year-old lubricants 
brand, with an enterprise value of $10.1 billion.

   The Canada Pension Plan Investment Board will contribute up to $1.05 billion 
to the deal to secure an indirect minority stake in Castrol, which operates 20 
blending plants and 100 warehouses across 150 countries.

   The deal is expected to close by the end of 2026 and includes a mandatory 
tender offer for public shareholders of separately listed subsidiary Castrol 
India Limited.




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