Stonepeak, an alternative investment firm specializing in infrastructure and real assets, announced an agreement to acquire a majority controlling interest in Castrol from BP p.l.c. in a transaction valuing the business at an enterprise value of approximately $10.1 billion. As part of the transaction, BP will retain a 35% minority interest in Castrol. In connection with the transaction, Canada Pension Plan Investment Board (“CPP Investments”) will invest up to USD $1.05 billion in support of the transaction, resulting in an indirect stake in Castrol.
Castrol is one of the largest lubricants providers globally and serves consumer automotive customers, as well as commercial and industrial end markets, officials stated in a press release. The company manufactures and markets engine oils, industrial fluids, and greases through approximately 20 blending plants and more than 100 third-party facilities and warehouses worldwide across 150 countries.
Castrol’s 126-Year Heritage
“Lubricants are a mission-critical product, which are essential to the safe and efficient functioning of virtually every vehicle, machine and industrial process in the world,” said Anthony Borreca, senior managing director and co-head of energy at Stonepeak. “Castrol’s 126-year heritage has created a leading market position, an iconic brand, and a portfolio of differentiated products that deliver meaningful value to its customers. We are excited to work alongside Castrol’s talented employees, coupled with BP’s continued guidance as a minority interest holder, as we support the business’s continued growth.”
“We are thrilled to have Stonepeak join us as a partner in Castrol. Stonepeak’s capital support, energy sector expertise, and experience working with similar companies that provide essential services will be immensely additive in helping the business to innovate and grow,” said Michelle Jou, global CEO of Castrol. “This transaction reflects our commitment to investing in the future and creating new opportunities for growth and success at Castrol, and we are proud that Stonepeak shares in our vision for the business as we take the next step in our journey.”
Commenting on the investment, Bill Rogers, managing director, head of sustainable energies at CPP Investments, said, “Castrol is a high-quality, global business at the heart of the energy and industrial economy. Its cutting-edge innovations and premium brand position it well for a growing role in emerging applications, from electric vehicles to data centers. Our investment alongside Stonepeak aligns with our strategy of backing businesses that are essential to the energy system. We believe Castrol’s strong market position and diversified growth opportunities will deliver attractive risk‑adjusted returns for the CPP Fund.”
Transaction Details
The transaction is expected to close by end of 2026, subject to customary regulatory approvals. Simpson Thacher & Bartlett LLP and DLA Piper served as legal counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP served as financing counsel, and UBS served as financial advisor to Stonepeak.
In addition, an announcement in respect of a mandatory tender offer (“MTO”) to the public shareholders of Castrol India Limited, in accordance with the Indian takeover code, was published by UBS Securities India Private Limited as manager in respect of the MTO. The MTO will be proceeded with only upon completion of the Castrol transaction. The relevant details have been included in the Public Announcement on the Securities and Exchange Board of India website. Khaitan & Co served as legal counsel from an Indian law perspective.