By Salma El-Sakka
BP has finalized the sale of a 65% stake in its lubricants business Castrol to US investment firm Stonepeak, securing $6bn (£4.4bn) in net proceeds that will be used to strengthen its balance sheet and reduce debt.
Deal Details
The transaction, agreed in December last year, sees BP retain a 35% share in a new joint venture with Stonepeak. Castrol, headquartered in the UK with more than 6,000 employees worldwide, supplies lubricants for motorists, commercial vehicles and industrial sectors.
Leadership Changes
Stonepeak appointed Shell chief executive Ben van Beurden as chairman of Castrol’s board following the completion of the deal.
Executive Comments
BP chief executive Meg O’Neill said the deal delivers meaningful cash proceeds while retaining a valuable stake in Castrol’s future growth, highlighting the unit’s expertise in advanced mobility and data centre cooling. Castrol chief executive Michelle Jou said the business begins its next phase from a position of strength with trusted brands and a clear growth strategy.
Debt Reduction and Strategy
BP’s net debt stood at $13.9bn (£10.2bn) at the end of September, according to its third-quarter update. The company has been divesting assets to simplify operations, cut costs and pay down borrowings. O’Neill, who took the top role in April, is expected to present her long-term strategy for the group in December.
Quarterly Profit Surge
Third-quarter results released last week showed underlying replacement cost profits nearly quadrupled to $8.46bn (£6.31bn) from $2.21bn a year earlier, driven by soaring crude prices linked to the Iran war.
