BP has agreed to sell a 65% stake in its Castrol lubricants business to Stonepeak for $10 billion, generating $6 billion to reduce debt. Stonepeak will hold 65%, with BP retaining 35%. The sale simplifies operations and focuses on high-return businesses. The deal marks progress toward BP’s $20 billion disposal target.

BP will receive $6 billion in net proceeds and plans to use it to reduce its $26.1 billion debt. The sale of Castrol, a 126-year-old brand, allows BP to retain exposure while streamlining its portfolio. Stonepeak aims to support Castrol’s growth, with regulatory approval expected by the end of 2026.

The divestment is part of BP’s strategy to optimize its portfolio and strengthen its financial position. Castrol’s nine consecutive quarters of earnings growth show its potential. The deal aligns with BP’s goal to focus on integrated businesses with higher returns and marks a significant step in its reset strategy.

Read more at Yahoo Finance: BP Sells Majority Stake in Castrol to Stonepeak in $10 Billion Deal