BP nears deal to sell 65% of Castrol to Stonepeak (valuing Castrol at about $10.1B)

What happened

BP says it agreed to sell a 65% stake in its Castrol lubricants business to U.S. investment firm Stonepeak for about $6B. BP keeps 35% in a JV and can sell the remainder after a 2-year lock-in. BP also referenced about $800M in accelerated dividend payments tied to the transaction, and the deal is expected to close by end of 2026.

Why it matters: this is a big step toward BP’s $20B asset-sale target and its plan to cut net debt toward roughly $14B–$18B by end of 2027.

Market read-through

This is a classic “cash now vs cash later” trade. BP is monetising a strong cash-generating brand to simplify the portfolio and reduce leverage. The bullish angle is balance-sheet flexibility and potential shareho ...