The energy giant BP Sells Controlling Interest in Lubricants Arm Castrol for $6bn.
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BP has struck a $6 billion agreement to sell a majority stake in its motor oil division Castrol to a American investment group.
Details of the Major Deal
The energy major has sold a 65% stake in Castrol, which makes lubricants for automobiles, bikes, and commercial machinery, to New York-based Stonepeak.
This transaction valued Castrol at $10.1bn, with BP obtaining $6bn in cash, which it will allocate to reducing debts and enable it to concentrate on its primary operations.
BP will retain a 35% stake in Castrol, which it first took control of in the year 2000.
Strategic Pivot and Asset Sales
The London-based oil major said the sale represents a "key moment" in its plans to restructure its business and reduce expenses.
BP earlier this year revealed intentions to sell off $20bn worth of holdings in a bid to focus on its primary fossil fuel operations and strengthen its balance sheet.
After today's deal and previous announcements, the company says it is over half way to achieving that goal.
It is also shifting its strategy away from funding for green energy and refocusing on its focus on oil and gas after pressure from some shareholders who were frustrated that its earnings and share price had lagged behind rivals.
Industry Context and Leadership Changes
Competitors like Shell and Norway's Equinor have also reduced plans to put money into green energy.
The Castrol sale arrives a week after BP announced its first female chief executive, Meg O'Neill, who will assume leadership in April 2026.
Her unexpected selection came only three months after BP named a new board chair, Albert Manifold.
And she was handed the top job less than two years after Murray Auchincloss succeeded Bernard Looney as chief executive.
Continuing Business Streamlining
This latest deal is the latest in a series of sales by the firm, which have included offloading its American wind power assets and its Dutch mobility and convenience arm.
Acting CEO Carol Howle commented the sale is a "excellent result for all parties involved".
"We are reducing complexity, focusing the downstream on our leading integrated businesses, and speeding up the execution of our strategy," she stated.