BP completes £4.4bn Castrol sale to reduce debt

Summarised from 2 outlets · Updated 2 Nov, 09:33 · Archive

BP has completed the sale of a 65% stake in lubricants business Castrol to US investment firm Stonepeak for £4.4 billion.

BP has completed the sale of a majority stake in lubricants business Castrol to US investment firm Stonepeak for 6 billion US dollars (£4.4 billion). The oil major agreed the sale of a 65% holding in December last year and will retain the remaining 35% stake in a new joint venture. BP said it would use the net proceeds to bolster its balance sheet and continue paying down debts, which stood at 13.9 billion dollars (£10.2 billion) at the end of September.

Castrol is headquartered in the UK and employs more than 6,000 staff worldwide. The business provides lubricants for motorists as well as for commercial vehicles and industrial sectors such as manufacturing. Stonepeak named Shell chief executive Ben van Beurden as chairman of Castrol's board following the deal.

BP chief executive Meg O'Neill said: 'This deal brings meaningful cash proceeds to BP today while retaining a valuable stake in Castrol's future growth.' She added that Castrol's expertise spans 'everything from advanced mobility solutions to data centre cooling'. The sale is part of BP's broader plan to simplify the group, strip out costs and pay down debts.

How it is being reported

• BP nets £4.4bn boost for balance sheet after Castrol deal completesThe oil group said it would use the net proceeds to bolster pay down debts.Independent Business · 2 Nov, 09:12
• BP nets £4.4bn boost for balance sheet after Castrol deal completesThe oil group said it would use the net proceeds to bolster pay down debts.Evening Standard · 2 Nov, 09:12

In this story: BP · Castrol · Stonepeak · Shell · Meg O'Neill · Ben van Beurden · UK

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