“BP”sells 65% stake in Castrol to US firm for $6 billion

British energy company “BP” has sold a 65% stake in its Castrol lubricants business to US private equity firm Stonepeak for $6 billion. The proceeds will be used to strengthen the company's financial position and reduce its debt burden.

According to “BP”, the $6 billion in after-tax proceeds from the sale of its controlling stake in Castrol will be used to strengthen its balance sheet and reduce financial liabilities.

Under the agreement, “BP” will retain a 35% stake in Castrol. The transaction also includes certain minority interests in other countries. These include Castrol's 49% stake in India, 35% in Vietnam, 50% in Saudi Arabia and 40% in Thailand.

Under the terms of the agreement, Castrol will operate as an independent company with its own management structure and strategic priorities.

In addition, “BP” will have the option to sell its remaining 35% stake in Castrol after a two-year lock-up period expires.

“BP”CEO Meg O'Neill said the company was taking steps to build a simpler, stronger and more valuable business.

According to her, the sale of the controlling stake in Castrol will provide “BP”with a significant cash inflow while allowing the company to continue benefiting from Castrol's future growth.

The transaction is an important part of “BP”'s strategy to strengthen its financial position, reduce Thus, although “BP”is transferring control of Castrol to Stonepeak, it will retain the opportunity to benefit from the brand's future development through its remaining 35% stake.