The biggest sale of a business will bring BP $6 billion. Will it help the company's stock?

BP has agreed to sell 65% of the Castrol lubricants brand to the Stonepeak investment fund. The British oil giant will use the proceeds to reduce debt and accelerate dividend payments. The market took the news positively: BP shares added more than 1% after the deal was announced.

British energy company BP said it has agreed to sell its controlling stake - 65% - in lubricants brand owner Castrol to U.S. investment fund Stonepeak for about $6 billion, a key step in the energy company's program to sell off assets to reduce its $20 billion debt load, Reuters notes. According to a BP statement, the deal values the oil giant's unit at $10.1 billion, including debt. This is the largest single asset sale for BP to date, The Wall Street Journal (WSJ) points out.

BP is expected to remain involved in Castrol's growth plans through a 35 percent stake in the new joint venture in the coming years after the deal is finalized. At the same time, Stonepeak will own the remaining 65 percent, BP said in a statement. The British oil company will be able to sell its stake after the end of the two-year lock-in period.

BP plans to use the proceeds from the sale to reduce its debt, the company added. Among other things, $800 mln will be used to accelerate dividend payments.

Stonepeak separately said that up to $1.05 billion in Castrol will also be invested by the Canadian Pension Plan Investment Board as part of the deal, it will also receive an indirect stake in the joint venture.

BP shares rose more than 1% in London trading after the announcement, they are trading plus 0.26% on the publication of the material.

Castrol is based in the UK and its fuel products and lubricants are available in more than 150 countries, WSJ notes. BP announced plans to sell this division to reduce its debt load back in February, the publication recalls.

In November, BP reported a smaller-than-expected drop in underlying profit in the third quarter of 2025 as higher refining margins partially offset the negative impact of low oil prices. After a failed attempt to turn around green energy, BP has placed an increased reliance on oil and gas production in an attempt to increase shareholder value and reduce debt. However, the market didn't take the company's positive news well: investors continued to sell off BP shares because the energy giant's representatives failed to mention the sale of Castrol in the report, which was an important part of the plan to reduce the company's multi-billion dollar debt. BP plans to sell $20 billion worth of assets by the end of 2027 to reduce its net debt from $26 billion to $14-18 billion.

This article was AI-translated and verified by a human editor