The energy giant BP Sells Controlling Stake in Motor Oil Division Castrol for $6bn.
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BP has struck a $6bn deal to sell a controlling interest in its motor oil division Castrol to a American investment group.
The Specifics Behind the Major Deal
The energy major has sold a 65 percent share in Castrol, which produces lubricants for automobiles, bikes, and commercial machinery, to New York-based Stonepeak.
This deal valued Castrol at $10.1bn, with BP obtaining $6 billion cash, which it will allocate to reducing debts and enable it to focus on its primary operations.
BP will retain a 35% stake in Castrol, which it first took control of in the year 2000.
A Strategic Pivot and Asset Sales
The UK-headquartered energy corporation said the sale represents a "milestone" in its plans to restructure its business and reduce costs.
BP in February announced plans to sell off $20 billion worth of holdings in a bid to prioritize its primary fossil fuel operations and fortify its financial position.
After this latest agreement and earlier disclosures, the company says it is more than halfway to meeting that target.
It is also changing its approach away from investment in green energy and renewing its focus on fossil fuels following calls by some shareholders who were disappointed that its profits and stock value had trailed competitors.
Industry Trends and Executive Changes
Competitors such as Shell and Norway's Equinor have also reduced plans to put money into renewables.
The Castrol sale arrives a week after BP announced its first female chief executive, Meg O'Neill, who will take the helm in April 2026.
Her unexpected selection occurred only three months after BP appointed a new chairman, Albert Manifold.
And she was given the CEO role less than two years after Murray Auchincloss took over from Bernard Looney as CEO.
Continuing Portfolio Simplification
This recent transaction is the latest in a series of sales by the company, which included offloading its American wind power assets and its Dutch mobility and convenience arm.
Interim chief executive Carol Howle said the sale represents a "very good outcome for all parties involved".
"We are reducing complexity, concentrating our refining and marketing on our core integrated operations, and accelerating delivery of our plan," she added.
