BP Sells Majority Stake in Castrol in Landmark $6bn Deal
So, there’s some major business news doing the rounds right now involving BP and one of its most recognisable brands, Castrol. What’s happened is that BP has agreed to sell a majority stake in its motor oil business in a deal worth a huge $6 billion, and it’s being seen as a turning point in how the company plans to move forward.
Under this agreement, a 65% stake in Castrol has been sold to Stonepeak, a US-based investment firm headquartered in New York. Castrol, which produces lubricants for cars, motorcycles, and industrial vehicles, has been valued at around $10.1 billion in total. From the sale, BP will receive $6 billion in cash, while it will retain a 35% stake in the business it has owned since taking control back in 2000.
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The money raised is expected to be used mainly to reduce BP’s debt and strengthen its balance sheet. According to the company, this sale represents a major milestone in its wider plan to simplify operations and strip out costs. Earlier this year, it was announced that BP intends to sell around $20 billion worth of assets, and with this deal now completed, the company says it is already more than halfway towards that target.
What’s also clear is that BP’s overall strategy has been shifting. Investment in green energy has been scaled back, while focus is being renewed on traditional oil and gas operations. This change has been driven partly by pressure from investors, some of whom were unhappy that BP’s profits and share price were lagging behind rivals. Other energy giants, such as Shell and Norway’s Equinor, have made similar moves, and political signals in favour of fossil fuel production have further encouraged the trend.
This Castrol sale also comes at a time of leadership change at BP. The company recently announced that Meg O’Neill will become its first female chief executive in April 2026, following a period of rapid changes at the top. Interim leadership has described the deal as a very positive outcome for all involved, with the business now being streamlined and refocused on its strongest areas.
Market reaction was largely upbeat, with BP shares initially rising on the news before settling back. Analysts have described the deal as a welcome boost for shareholders, as it allows BP to significantly cut down its borrowing and move closer to its long-term divestment goals. Overall, the sale of Castrol’s majority stake is being seen as a bold step in reshaping BP’s future.
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