BP Sells Majority Stake in Castrol for $6bn as It Refocuses on Core Business

Energy giant BP has agreed to sell a majority stake in its well known motor oil business Castrol in a deal worth $6bn, marking a significant shift in the company’s strategy as it looks to strengthen its balance sheet and narrow its focus.

Under the agreement, BP has sold a 65 percent stake in Castrol to US investment firm Stonepeak. The transaction values Castrol at $10.1bn, with BP receiving $6bn in cash from the sale. The company will retain a 35 percent holding in the business, allowing it to remain partially involved in the brand’s future direction.

BP said the proceeds from the deal will be used primarily to reduce debt, giving the group more financial flexibility at a time when energy companies are under pressure to balance traditional oil and gas operations with investment in lower carbon technologies. Executives have signalled that the move will also allow BP to concentrate more closely on its core energy activities rather than managing a broad portfolio of consumer facing brands.

Castrol is one of the most recognisable names in automotive lubricants, supplying oils and fluids for cars, motorcycles, and industrial vehicles across global markets. BP first took control of the brand in 2000, and it has since become a familiar presence in motorsport and everyday vehicle maintenance.

For Stonepeak, the acquisition represents a major investment in a stable, cash generating business with strong brand recognition. Analysts say Castrol’s global reach and long standing customer base make it an attractive asset despite slower growth in some traditional vehicle markets.

The deal reflects a wider trend among oil majors to streamline operations and unlock value from non core assets, as the sector adapts to changing energy demands and investor expectations.