Overview
- BP will form a 65/35 joint venture with the buyer and expects closing by the end of 2026, subject to regulatory approvals.
- Net proceeds of roughly $6 billion, including accelerated dividends, will be used to reduce net debt, taking announced divestments to about $11 billion toward a $20 billion goal by 2027.
- Stonepeak said Canada Pension Plan Investment Board will invest up to $1.05 billion, gaining an indirect interest in the lubricants business.
- The transaction values the business at $10.1 billion including debt, with analysts estimating implied equity value at roughly $8 billion after minority interests and other obligations.
- Shares of Castrol India jumped more than 8% intraday after the announcement before paring gains into the close.