bp has agreed to sell a 65% stake in Castrol to Stonepeak, valuing the business at $10.1 billion. The deal supports bp’s strategy to simplify its portfolio and strengthen its balance sheet. bp expects around $6 billion in net proceeds, including roughly $0.8 billion in pre-paid future dividends on its retained stake. After adjustments, Castrol’s implied equity value is $8 billion.
Once complete, Castrol will operate as a joint venture 65% owned by Stonepeak and 35% by bp, giving bp continued exposure to Castrol’s growth. After a two-year lock-up, bp may sell its remaining stake.
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