Castrol India Jumps 9% as BP Sells 65% in Castrol to Stonepeak; Deal Implies $10.1bn EV, $6bn Net Proceeds

shares rose as much as ~9% after BP said it will sell a 65% stake in Castrol Ltd to Stonepeak, valuing the lubricants business at an enterprise value of $10.1 billion. BP said the transaction is expected to generate about $6 billion of net proceeds (including adjustments such as pre-payment of future dividend income on BP’s retained stake) and is targeted to close by end-2026, subject to approvals. Post-deal, a new joint venture is expected with 65% Stonepeak and 35% BP ownership, and BP’s retained 35% keeps it exposed to Castrol’s growth plan while also providing optionality to sell after a two-year lock-up. Markets appear to be pricing in potential strategic spillovers for listed subsidiaries like Castrol India given that a meaningful portion of Castrol’s JV minority interests relate to Castrol India shareholding. Source: The Economic Times No Recommendations