- bp sells 65% of Castrol to Stonepeak at a $10 billion enterprise value.
- Net proceeds of approximately $6 billion will reduce bp's net debt.
- The transaction is expected to complete by end of 2026, pending regulatory approvals.
- A new joint venture will be formed with 65% Stonepeak and 35% bp ownership.
Transaction Overview
bp has agreed to sell a 65% shareholding in Castrol to Stonepeak, valuing the enterprise at $10 billion. This move is part of bp's strategy to simplify its portfolio and focus on its core downstream businesses.
Financial Impact
The transaction is expected to generate approximately $6 billion in net proceeds for bp, which will be used to reduce net debt. The deal includes a pre-payment of future dividend income on bp's retained 35% stake.
Joint Venture Formation
Upon completion, a new joint venture will be established, with Stonepeak holding 65% and bp retaining 35%. This structure allows bp to benefit from Castrol's growth while maintaining the option to sell its remaining stake after a two-year lock-up period.
Timeline and Regulatory Approvals
The transaction is anticipated to close by the end of 2026, subject to regulatory approvals. This sale is part of bp's broader $20 billion divestment program, with proceeds aimed at strengthening the company's balance sheet.
