BP's Strategic Castrol Sale: A $10 Billion Move

BP is close to selling a majority stake in its Castrol unit to Stonepeak for $6 billion. The deal is part of BP's plan to divest $20 billion in assets by 2027, focusing on debt reduction and cost-cutting by shifting away from renewable energy strategies.

BP is reportedly nearing a landmark sale of a majority stake in its Castrol lubricants division to investment firm Stonepeak, according to the Wall Street Journal. The transaction values the unit at a staggering $10 billion, debt included.

The London-listed energy giant is expected to sell a 65% stake in Castrol for approximately $6 billion while retaining a minority interest through a joint venture, further corroborated by the Financial Times. The move is part of BP's broader strategy to divest $20 billion in assets by 2027 to reduce debt.

Sources indicate that BP initiated the sale process earlier this year, aligning with its strategy to decrease reliance on renewable energy projects. This strategic asset disposal follows BP's leadership reshuffle, aiming to bolster profitability and market performance lagging behind industry peers.

(With inputs from agencies.)