British Petroleum (BP) is nearing an agreement to sell a majority stake in its Castrol lubricants business to US investment firm Stonepeak in a deal valuing Castrol at about $10 billion. The transaction is part of BP’s wider effort to simplify its business and strengthen its balance sheet.
As per the proposed structure, BP will sell around 65 percent of Castrol and retain a 35 percent stake through a joint venture. The sale is expected to generate nearly $6 billion in cash for BP. Stonepeak will take management control, while BP will continue to benefit from Castrol’s performance through its minority holding.
Castrol is one of BP’s most recognisable brands, with a strong presence in automotive and industrial lubricants across global markets. While it is a steady and profitable business, BP has been under investor pressure to focus capital on higher-return areas and reduce debt as it balances oil and gas operations with its energy transition plans.
Reports indicate that a Canadian pension fund may also invest alongside Stonepeak. BP could consider selling its remaining stake in Castrol in the future, depending on market conditions and strategic priorities.
The deal is still subject to final negotiations and regulatory approvals. If completed, it would rank among the largest transactions in the global lubricants sector and is expected to close by the end of 2026. For BP, the move offers financial flexibility, while for Stonepeak, it provides access to a well-established global brand with stable cash flows.
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