### Stonepeak's Strategic Acquisition of Castrol: A $10.1 Billion Deal In a significant move within the energy sector, Stonepeak, a U.S.-based infrastructure investment firm, has agreed to acquire a 65% controlling stake in the iconic lubricant brand Castrol from British Petroleum (BP) for approximately $6 billion. This transaction values Castrol at an enterprise value of $10.1 billion, including debt. The deal, announced on December 24, 2025, is part of BP's broader strategy to streamline its operations and reduce its debt load as it navigates a changing energy landscape. BP will retain a 35% interest in Castrol, allowing it to remain involved in the brand's future growth strategy [https://www.indexbox.io/blog/stonepeak-acquires-majority-stake-in-castrol-in-101-billion-deal][https://www.tekedia.com/bp-sells-65-stake-in-castrol-to-stonepeak-for-6bn-advancing-20bn-divestment-plan]. ### Breakdown of the Acquisition and Its Implications 1. **Transaction Overview** - Stonepeak is acquiring a 65% stake in Castrol for $6 billion, with the total enterprise value of the lubricants business set at $10.1 billion [https://www.finanznachrichten.de/nachrichten-2025-12/67306838-bp-to-sell-65-stake-in-castrol-to-stonepeak-at-enterprise-value-of-dollar-10-bln-020.htm]. - This sale is a key component of BP's $20 billion divestment plan aimed at reducing debt and improving financial stability [https://www.tekedia.com/bp-sells-65-stake-in-castrol-to-stonepeak-for-6bn-advancing-20bn-divestment-plan]. 2. **Strategic Rationale** - The divestment aligns with BP's strategic review, which sought to attract interest from various investors, ultimately leading to this significant sale [https://pulse2.com/bp-to-sell-65-of-castrol-to-stonepeak-at-10-1-billion-deal]. - BP's decision to retain a 35% stake indicates a commitment to the brand's future and a desire to leverage Stonepeak's investment for growth [https://news.az/news/bp-sells-65-stake-in-castrol-to-stonepeak-for-6-billion]. 3. **Market Reaction** - Following the announcement, shares of Castrol India surged over 8%, reflecting positive market sentiment regarding the deal and its implications for future growth [https://www.businessupturn.com/finance/stock-market/castrol-india-shares-jump-over-8-after-bp-agrees-to-sell-65-stake-in-castrol]. ### Supporting Data and Market Insights - **Valuation Metrics** - The deal values Castrol at an enterprise value/last twelve months (EV/LTM) EBITDA multiple of approximately 8.6x, indicating strong market confidence in the brand's profitability and growth potential [https://pulse2.com/bp-to-sell-65-of-castrol-to-stonepeak-at-10-1-billion-deal]. - **Financial Impact** - The proceeds from the sale will be utilized to reduce BP's debt, which is a critical aspect of its financial restructuring efforts [https://www.businesstimes.com.sg/companies-markets/energy-commodities/bp-sell-65-stake-castrol-stonepeak-us6-billion]. ### Conclusion: A Strategic Shift for BP and Castrol In summary, the acquisition of a 65% stake in Castrol by Stonepeak represents a pivotal moment for both BP and the lubricants brand. 1. **Key Findings** - The transaction is valued at $10.1 billion, with BP receiving $6 billion in net proceeds [https://www.tekedia.com/bp-sells-65-stake-in-castrol-to-stonepeak-for-6bn-advancing-20bn-divestment-plan]. - BP's strategy to divest assets is aimed at reducing debt and enhancing operational efficiency [https://www.devdiscourse.com/article/headlines/3740690-bp-sells-major-stake-in-castrol-to-stonepeak-in-6-billion-deal]. 2. **Future Outlook** - With Stonepeak's investment, Castrol is poised for growth, while BP maintains a stake to ensure continued involvement in its strategic direction [https://www.indexbox.io/blog/stonepeak-acquires-majority-stake-in-castrol-in-101-billion-deal]. This acquisition not only marks a significant financial maneuver for BP but also sets the stage for Castrol's next phase of growth under new ownership.