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BP Sells 65% of Castrol to Stonepeak in $10.1 Billion Deal

The move advances BP’s $20 billion divestment plan to reduce leverage.

Overview

  • The transaction will generate about $6 billion in net proceeds for BP, including roughly $800 million of accelerated dividend pre-payments linked to its retained stake.
  • BP will retain a 35% interest through a joint venture with a two-year lock-up and an option to sell the remainder afterward.
  • Completion is expected by the end of 2026 subject to regulatory approvals, with local processes in markets such as India shaping the timetable.
  • Stonepeak said the Canada Pension Plan Investment Board will invest up to $1.05 billion, securing an indirect stake in Castrol.
  • Analysts highlighted that the headline valuation implies a lower adjusted enterprise value near $8 billion after minority and debt-like items, and Castrol India shares jumped intraday before trimming gains.