NEW YORK, December 28, 2025, 18:42 ET
- Stonepeak agreed to buy 65% of BP’s Castrol lubricants business, valuing it at about $10.1 billion. 1
- BP expects around $6 billion in net proceeds and will retain a 35% stake through a new joint venture. 2
- Stonepeak and CPP Investments said they plan a mandatory open offer for Castrol India at 194.04 rupees per share once the global deal closes. 3
BP has agreed to sell a 65% stake in its Castrol lubricants business to investment firm Stonepeak, valuing the unit at about $10.1 billion on an enterprise basis. Enterprise value is a measure that includes a company’s debt. 1
BP expects the transaction to deliver net proceeds of around $6 billion, including accelerated dividend payments, and said the cash will be used to reduce net debt. 2
The deal also has an immediate knock-on in India, where Stonepeak and Canada Pension Plan Investment Board (CPP Investments) are setting up a mandatory share offer for Castrol India once the wider transaction is completed. 3
Stonepeak will acquire 65% of Castrol while BP will retain a 35% minority interest through a newly formed joint venture. BP will have an option to sell its remaining stake after a two-year lock-up period, according to statements on the transaction. 2
CPP Investments will invest up to $1.05 billion alongside Stonepeak, gaining an indirect, non-controlling interest in Castrol, the firms said. 4
“Today’s announcement is a very good outcome for all stakeholders,” BP interim CEO Carol Howle said. 2
Castrol supplies engine oils, industrial fluids and greases to consumer automotive, commercial and industrial customers and operates in about 150 countries, Stonepeak said. 1
In India, Stonepeak and CPP Investments said they would offer 194.04 rupees per share to acquire up to 26% of Castrol India’s shares, according to an exchange filing cited by Reuters. 3
An open offer is India’s takeover-rule requirement for bidders that cross certain ownership thresholds or take control of a listed company, giving public shareholders an option to tender their shares. 3
Stonepeak said the Castrol India tender offer would proceed only upon completion of the global Castrol transaction. 1
Stonepeak said the Castrol transaction is expected to close by the end of 2026, subject to customary regulatory approvals. 1
Castrol is one of the largest finished-lubricants brands, competing with peers such as Shell and Exxon Mobil in automotive and industrial oils.
Stonepeak, which says it manages about $80 billion of assets, focuses on infrastructure and real assets, including energy-related investments. 1
UBS advised Stonepeak on the transaction and UBS Securities India has been named as manager for the Castrol India tender offer, while law firms including Simpson Thacher & Bartlett and DLA Piper were among advisers, Stonepeak said.
