Stonepeak to Acquire Majority Castrol Stake from BP CPP Invests.

Stonepeak, a premier infrastructure investor, has reached a binding agreement to acquire a majority controlling stake in Castrol from BP p.l.c. for an enterprise value of about $10.1 billion. Upon close, BP will retain a 35% minority stake and CPP Investments (Canada Pension Plan Investment Board) will contribute up to $1.05 billion to support the transaction, creating a blended equity structure that aligns long‑term growth with capital discipline.

Castrol, a storied global lubricant producer with decades of engine and industrial fluid expertise, spans more than 150 countries and operates with a network of roughly 20 blending plants and over 100 third‑party facilities. The deal underscores a trend toward consolidation in essential industrial products as manufacturers seek scale, improved supply chain resilience, and greater investment capacity for product development and digitalization across automotive, aerospace, and heavy industry end markets.

For Stonepeak, the acquisition broadens exposure to critical, cash‑generative manufacturing and industrial services with a well‑established, premium brand. The partnership structure—combining Stonepeak’s finance and operations expertise with BP’s continued minority stake—aims to preserve continuity for Castrol’s workforce and customers while accelerating product innovation and geographic expansion in data‑driven lubricant solutions.

CPP Investments frames the transaction as a strategic fit for its broader energy and industrial portfolio. In commentary accompanying the deal, the fund highlighted Castrol’s role at the heart of industrial economies, including evolving demand from both traditional automotive segments and emerging infrastructure uses such as data centers and electrified platforms that demand high‑performance lubricants and sustained reliability.

The closing is anticipated by the end of 2026, subject to customary regulatory approvals. In parallel, advisors to the parties include Simpson Thacher & Bartlett LLP and DLA Piper as legal counsel, with Paul, Weiss, Rifkind, Wharton & Garrison LLP serving as financing counsel and UBS as financial adviser to Stonepeak. An Indian tender‑offer process overseen by UBS Securities India Private Limited and Khaitan & Co complements the international transaction as Castrol India Ltd. participates in the broader strategic re‑set.

Castrol’s next growth phase centers on sustained technology leadership, expanding its premium product lines, and leveraging a global distribution footprint to meet evolving end‑market needs. As energy transitions accelerate and industrial activity remains robust in multiple regions, the deal adds a dynamic, capital‑light platform with the potential to deliver strong, risk‑adjusted returns for investors while preserving Castrol’s heritage of performance and reliability.