Stonepeak, the New York-based alternative investment firm, has reached an agreement to acquire a 65% controlling interest in Castrol from BP (NYSE:BP), the companies announced Wednesday.
The transaction values the global lubricants leader at an enterprise value of approximately $10.1 billion, representing one of the largest carve-outs in the lubricants sector in recent years.
Under the terms of the deal, BP will retain a 35% minority stake in the business, which will operate as a joint venture.
The transaction is a centerpiece of BP’s broader strategy to divest $20 billion in assets by 2027 as it attempts to reduce debt and focus on its core integrated energy operations.
The sale is expected to generate net proceeds of approximately $6 billion for BP, including the pre-payment of future dividend income.
The acquisition is being supported by the Canada Pension Plan Investment Board (CPP Investments), which has committed to investing up to $1.05 billion for an indirect stake in Castrol.
The deal is expected to close by the end of 2026, pending customary regulatory approvals.