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It will divest 65% of Castrol for an overall business valuation of $10.1 billion, which accounts for debt.
The agreement will yield net proceeds of around $6 billion for BP, which includes an initial dividend payment of $800 million on the company's maintained 35% share in Castrol.
The parties anticipate concluding the transaction by the close of 2026. BP will be allowed to sell its remaining share in Castrol following a two-year lock-up period.
The agreement is included in a $20 billion asset sale strategy revealed by BP in February 2025. As of now, the overall worth of transactions that have either been finalized or declared under this initiative stands at around $11 billion, as stated in the press release.
All revenue from selling the Castrol stake will be applied to decrease BP's debt. The firm's debt reached $26.1 billion by the close of the third quarter.
BP revealed intentions to divest Castrol by the close of February 2025. Firms like Saudi Aramco, Reliance Industries Ltd., Apollo Global Management, Lone Star Funds, Brookfield Asset Management, and others showed interest in purchasing the business, but later became disinterested.
source: bloomberg.com
The agreement will yield net proceeds of around $6 billion for BP, which includes an initial dividend payment of $800 million on the company's maintained 35% share in Castrol.
The parties anticipate concluding the transaction by the close of 2026. BP will be allowed to sell its remaining share in Castrol following a two-year lock-up period.
The agreement is included in a $20 billion asset sale strategy revealed by BP in February 2025. As of now, the overall worth of transactions that have either been finalized or declared under this initiative stands at around $11 billion, as stated in the press release.
All revenue from selling the Castrol stake will be applied to decrease BP's debt. The firm's debt reached $26.1 billion by the close of the third quarter.
BP revealed intentions to divest Castrol by the close of February 2025. Firms like Saudi Aramco, Reliance Industries Ltd., Apollo Global Management, Lone Star Funds, Brookfield Asset Management, and others showed interest in purchasing the business, but later became disinterested.
source: bloomberg.com
