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. [4]
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. [5]
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. [6]
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. [7]
CPP Investments will invest up to $1.05 billion alongside Stonepeak, gaining an indirect, non-controlling interest in Castrol, the firms said. [8]
“Today’s announcement is a very good outcome for all stakeholders,” BP interim CEO Carol Howle said. [9]
Castrol supplies engine oils, industrial fluids and greases to consumer automotive, commercial and industrial customers and operates in about 150 countries, Stonepeak said. [10]
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. [11]
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. [12]
Stonepeak said the Castrol India tender offer would proceed only upon completion of the global Castrol transaction. [13]
Stonepeak said the Castrol transaction is expected to close by the end of 2026, subject to customary regulatory approvals. [14]
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. [15]
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.
References
1. stonepeak.com, 2. www.workboat.com, 3. www.reuters.com, 4. stonepeak.com, 5. www.workboat.com, 6. www.reuters.com, 7. www.workboat.com, 8. www.cppinvestments.com, 9. www.workboat.com, 10. stonepeak.com, 11. www.reuters.com, 12. www.reuters.com, 13. stonepeak.com, 14. stonepeak.com, 15. stonepeak.com
