Business
bp agrees to sell 65% in Castrol to Stonepeak
BP PLC has agreed to sell a 65% shareholding in Castrol to Stonepeak for an enterprise value of $10.1 billion, expecting total net proceeds of approximately $6.0 billion, which will be used to reduce net debt. This transaction accelerates BP's strategy to simplify its portfolio, strengthen its balance sheet, and focus its downstream operations, while BP will retain a 35% stake in a new joint venture, providing exposure to Castrol's growth and future optionality. The deal, which is part of BP's $20 billion divestment program, is expected to complete by the end of 2026 and contributes to BP's goal of reducing net debt to between $14 billion and $18 billion by the end of 2027. Disclaimer*
About this update from Bp Plc
[{"type":"text","content":"\n\npress release\n24 December 2025\n \nbp agrees to sell a 65% shareholding in Castrol to Stonepeak at an\nenterprise value of $10 billion\n \n· bp has reached an agreement to sell a 65% shareholding in Castrol at an enterprise value of $10 billion.\n· Total net proceeds to bp of c.$6 billion, including accelerated dividend payments, will be fully utilised to reduce net debt.\n· Transaction accelerates delivery of bp's reset strategy, will significantly strengthen its balance sheet, and advances strategy to focus the downstream.\n· bp's retained stake in a new joint venture provides exposure to Castrol's growth plan while retaining optionality to realise further value in the future.\n \nFollowing a comprehensive strategic review of Castrol, bp has reached an agreement to sell a 65% shareholding in Castrol to Stonepeak, at an enterprise value of $10.1 billion. This represents an implied EV / LTM EBITDA of around 8.6x reflecting the strength of the business and future growth potential. The transaction represents a significant milestone in bp's commitment to accelerate its strategy, including simplifying the portfolio, strengthening the balance sheet, and focusing the downstream on its leading integrated businesses.\n \nThe transaction is expected to result in total net proceeds to bp of approximately $6.0 billion, which includes around $0.8 billion for the pre-payment of future dividend income over the short to medium term on bp's retained 35% stake and other adjustments. The implied total equity value of Castrol is $8.0 billion after deducting JV minority interests totaling $1.8 billion, and other debt-like obligations of around $0.3 billion, and subject to customary adjustments. A significant proportion of Castrol JV minority interests relate to the shareholding in the publicly listed Castrol India Limited.\n \nUpon completion of the transaction a new joint venture will be incorporated comprising a 65% Stonepeak and 35% bp ownership. bp's retained stake provides exposure to Castrol's growth plan over the coming years, which builds on a strong track record of nine quarters of consecutive year on year earnings growth. Following a two-year lock-up period, bp has optionality to sell its 35% stake in Castrol.\n \nThe transaction is ...