BP has completed a six billion dollar deal. The company sells a majority stake in its Castrol motor oil business. US investment firm Stonepeak acquires the holding. The buyer operates from New York. BP sells 65 percent of Castrol. The brand produces lubricants for cars, motorcycles, and industrial vehicles. The agreement values Castrol at 10.1 billion dollars. BP receives six billion dollars in cash. Management plans to cut debt and sharpen its business focus.
BP retains a 35 percent stake in Castrol. The group first took control of the brand in 2000. Executives described the sale as a strategic milestone. BP wants to simplify operations and strip out costs. The deal supports a broader restructuring effort.
Asset Sales Gain Momentum
BP announced a major divestment program in February. The company aims to sell assets worth 20 billion dollars. Management wants a stronger focus on oil and gas production. BP also plans to reinforce its balance sheet. The company says progress has passed the halfway mark. Earlier transactions helped deliver that progress.
BP has adjusted its energy strategy. The group reduces spending on renewable energy projects. Some investors expressed frustration with past performance. Profits and the share price lagged behind competitors. BP now prioritizes traditional energy activities.
Industry Shifts Shape Strategy
Other energy majors follow similar paths. Shell has slowed its green investment plans. Norwegian producer Equinor has taken comparable steps. Political messaging has influenced boardroom decisions. US President Donald Trump urged expanded drilling. That call encouraged renewed fossil fuel investment.
Leadership Changes Surround the Deal
The Castrol sale follows recent leadership changes. BP appointed its first female chief executive. Meg O’Neill will take charge in April 2026. The appointment surprised many analysts. BP had appointed a new chairman only months earlier. Albert Manifold recently assumed that role. O’Neill steps in less than two years after the last transition. Murray Auchincloss replaced Bernard Looney during that period.
Investors Show Mixed Reaction
BP continues to exit non core businesses. The company sold its US onshore wind operations. It also divested its Dutch mobility and convenience arm. Interim chief executive Carol Howle welcomed the outcome. She said the sale benefits all stakeholders. BP reduces complexity and accelerates delivery of its plan.
Market reaction remained uneven during trading. Russ Mould of AJ Bell praised the transaction. He said the proceeds would reduce borrowing levels. The deal advances the divestment goal for 2027. BP shares rose early on Wednesday. Most gains faded later in the session.
