Stonepeak to Secure Majority Stake in Castrol from bp

Stonepeak to Acquire Majority Stake in Castrol in $10.1 Billion Deal

Stonepeak, a prominent investment firm focused on infrastructure and real assets, has entered into an agreement to acquire a controlling interest in Castrol, a global leader in the lubricants industry, from bp p.l.c. The transaction values Castrol at an enterprise value of approximately $10.1 billion. Under the terms of the deal, bp will retain a 35% minority stake in Castrol. Additionally, the Canada Pension Plan Investment Board (CPP Investments) is set to invest up to $1.05 billion, securing an indirect interest in Castrol and supporting the transaction.

This strategic move positions Castrol for its next phase of growth, leveraging Stonepeak’s expertise in the energy and infrastructure sectors. Castrol, with its extensive 126-year history, boasts a significant market presence, an iconic brand, and a portfolio of specialized products that deliver substantial value to its diverse customer base. The company’s operations span approximately 20 blending plants and over 100 third-party facilities globally, serving automotive, commercial, and industrial sectors across 150 countries. Castrol’s legacy includes providing lubricants for groundbreaking achievements such as the Concorde jet and numerous space missions, underpinning its reputation for high performance and cutting-edge technology.

“Lubricants are mission-critical products, essential for the smooth operation of nearly every vehicle, machine, and industrial process worldwide,” stated Anthony Borreca, Senior Managing Director and Co-Head of Energy at Stonepeak. “Castrol’s enduring heritage has cemented its leadership position and iconic brand. We are eager to collaborate with Castrol’s dedicated employees and benefit from bp’s continued involvement as a minority shareholder, as we support the company’s ongoing expansion.”

Michelle Jou, Global CEO of Castrol, expressed enthusiasm about the partnership: “We are delighted to welcome Stonepeak as our partner. Stonepeak’s capital, deep energy sector knowledge, and experience with similar essential service providers will be invaluable as we drive innovation and growth at Castrol. This transaction underscores our commitment to investing in the future and creating new avenues for success, and we are proud that Stonepeak shares our vision for the company’s journey ahead.”

Bill Rogers, Managing Director, Head of Sustainable Energies at CPP Investments, commented on the investment’s strategic alignment: “Castrol is a high-quality, global business integral to the energy and industrial economy. Its advanced innovations and premium brand position it well for emerging applications, including electric vehicles and data centers. Our investment alongside Stonepeak aligns with our strategy of supporting businesses vital to the energy system, and we anticipate Castrol’s strong market position and diversified growth prospects will yield attractive risk-adjusted returns for our fund.”

The transaction is anticipated to be finalized by the end of 2026, contingent upon the satisfaction of customary regulatory approvals. Legal counsel for Stonepeak was provided by Simpson Thacher & Bartlett LLP and DLA Piper, with Paul, Weiss, Rifkind, Wharton & Garrison LLP serving as financing counsel. UBS acted as the financial advisor to Stonepeak.

In parallel, an announcement regarding a mandatory tender offer for the public shareholders of Castrol India Limited, in accordance with Indian takeover regulations, has been issued. This tender offer is contingent upon the completion of the main Castrol transaction. Further details are available on the Securities and Exchange Board of India’s website. Khaitan & Co provided Indian legal counsel for this aspect of the transaction.

**About Stonepeak**
Stonepeak is a leading alternative investment firm with approximately $80 billion in assets under management, specializing in infrastructure and real assets. The firm focuses on investing in defensive, hard-asset businesses globally, aiming to generate strong risk-adjusted returns with an emphasis on downside protection. Stonepeak provides capital, operational support, and strategic partnerships to its portfolio companies across sectors including digital infrastructure, energy and energy transition, transport and logistics, and real estate. Headquartered in New York, Stonepeak maintains offices in Houston, Washington, D.C., London, Hong Kong, Seoul, Singapore, Sydney, Tokyo, Abu Dhabi, and Riyadh.

**About Castrol**
Castrol is a globally recognized leader in lubricant technology, with a rich history of innovation dating back over 125 years. The brand is renowned for its high-performance lubricants and greases, which have supported significant technological advancements across automotive, marine, industrial, and aerospace sectors. As part of the bp group, Castrol serves a wide range of customers and consumers worldwide, driven by a commitment to premium quality and cutting-edge technology.