The energy giant BP Sells Controlling Interest in Motor Oil Arm Castrol for $6bn.
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BP has struck a $6bn deal to sell a controlling interest in its motor oil division Castrol to a American investment group.
The Specifics Behind the Transaction
The oil giant has sold a 65% stake in Castrol, which produces lubricants for cars, motorcycles and industrial vehicles, to New York-based Stonepeak.
This deal valued Castrol at $10.1 billion, with BP receiving $6 billion cash, which it will allocate to reducing debts and allow it to concentrate on its core business.
BP will retain a 35 percent share in Castrol, which it first took control of in the year 2000.
Strategic Pivot and Asset Sales
The UK-headquartered oil major stated the sale is a "milestone" in its plans to overhaul its business and reduce costs.
BP in February announced plans to sell off $20 billion worth of assets in a bid to focus on its primary fossil fuel operations and fortify its balance sheet.
Following this latest agreement and previous announcements, the company says it is over half way to meeting that goal.
It is also changing its approach from investment in green energy and refocusing on its emphasis on oil and gas following calls by some shareholders who were disappointed that its earnings and stock value had lagged behind rivals.
Industry Context and Executive Changes
Rivals like Shell and Norway's Equinor have also reduced plans to invest in green energy.
The Castrol sale comes a week after BP announced its first female chief executive, Meg O'Neill, who will take the helm in April 2026.
Her unexpected selection came only three months after BP named a new board chair, Albert Manifold.
And she was given the CEO role less than two years after Murray Auchincloss took over from Bernard Looney as chief executive.
Ongoing Portfolio Simplification
This latest deal is the latest in a series of divestments by the firm, which included offloading its American wind power assets and its Netherlands-based retail and fuel operations.
Interim chief executive Carol Howle commented the sale represents a "excellent result for all parties involved".
"We are simplifying our structure, concentrating our refining and marketing on our leading integrated businesses, and accelerating delivery of our plan," she added.
