BP completes Castrol sale, gets $6B to pay down debt
Oli Scarff/Getty Images News
BP (BP) said Monday it completed the $6B sale of a 65% stake in its Castrol lubricants brand to Stonepeak Partners and confirmed it plans to use the proceeds to strengthen its balance sheet; BP will retain a 35% ownership stake in Castrol.
BP's Earnings Call Insights: Here's what you need to know
On Friday, BP (BP) said its net debt had fallen to $13.9B at the end of Q3 from $22.3B just three months earlier and that the closure of the Castrol sale was "imminent."
"This deal brings meaningful cash proceeds to BP today while retaining a valuable stake in Castrol’s future growth," BP (BP) CEO Meg O'Neill said. "It will now have greater independence to accelerate its next phase of delivery."
Stonepeak said with the closing, Castrol has appointed a new board chaired by former Shell CEO Ben van Beurden, and its board will include four independent directors, including the chair, three directors affiliated with Stonepeak, two directors from BP, and one director from CPP Investments.
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