"Stonepeak will acquire a 65% stake in Castrol, in a deal that values the division at $10.1bn including its debt. The deal, which will see BP retain a 35% stake in the business through a joint venture, is expected to close at the end of next year, the company said on Wednesday."
"It marks the latest step in BP's push to sell $20bn in assets, as it has faced pressure from the activist US hedge fund Elliott Investment Management to cut costs and reduce debt. BP said it would use the $6bn in proceeds from the deal to pay down its own debt, which stood at $26.1bn at the end of its latest quarter."
"It comes as BP's new chair oversees a radical overhaul of its strategy after a failed attempt to pivot to renewable energy under his predecessor. Last week, the company made the surprise announcement that it was replacing its chief executive, Murray Auchincloss, after less than two years in the top job. He will be replaced by Meg O'Neill, the chief executive of Woodside Energy, in April, with Howle taking charge in the interim."
BP agreed to sell a 65% stake in its lubricants business Castrol to US investment firm Stonepeak, valuing the division at $10.1bn including debt. BP will retain a 35% stake through a joint venture and expects the transaction to close at the end of next year. The company plans to use $6bn of proceeds to pay down its existing debt, which stood at $26.1bn at the end of the latest quarter. The sale forms part of a targeted $20bn asset divestment programme and accompanies a strategic reset and senior leadership changes at BP.
Read at www.theguardian.com
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