KATHMANDU: British Petroleum (BP) has agreed to sell a 65 percent stake in its Castrol lubricants business to private equity firm Stonepeak for around $6 billion.
The deal is part of BP’s broader plan to divest $20 billion worth of assets to reduce debt and improve financial returns. After the transaction, BP will retain a 35 percent stake in a new joint venture with Stonepeak. BP will have the option to sell its remaining stake after a two-year lock-in period.
The transaction values Castrol at $10.1 billion. After accounting for joint venture minority interests worth about $1.8 billion and other debt-related obligations of around $300 million, the implied equity value of Castrol is estimated at $8 billion.
A large portion of the minority interest is linked to Castrol India Limited, which is publicly listed.
BP Interim Chief Executive Officer Carol Howle said the sale followed a strategic review of Castrol that attracted strong investor interest. She added that the deal marks a key step in BP’s reset strategy, helping simplify operations, strengthen the balance sheet, and focus on core downstream businesses.
BP stated that more than half of its planned $20 billion divestment program has now been completed or announced.
