In a massive Christmas Eve shakeup for the energy and infrastructure sectors, Stonepeak has officially moved to acquire a 65% majority stake in Castrol from bp. The deal, announced on December 24, 2025, values the iconic 126-year-old lubricants brand at an enterprise value of 10.1 billion.
The thing is, this isn’t a total exit for bp. They’re keeping a 35% minority stake in a new joint venture, which basically lets them stay in the room for Castrol’s future growth in electric vehicles and data centers. Or nothing. Let’s be real, bp needs the 6 billion in net proceeds to fix their balance sheet and hit their debt targets for 2027. Those too.
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The Deal Breakdown
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The Buyer: Stonepeak, a New York-based firm with about $80 billion in assets.
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The Partner: CPP Investments is putting up 1.05 billion to support the deal, snagging an indirect stake.
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The Multiplier: The transaction reflects an EV/EBITDA of 8.6x, showing that even in a transition toward green energy, high-performance lubricants are still seen as a cash cow.
The “India Trigger”
And here’s the kicker: because Castrol global is changing hands, it triggered a mandatory open offer for Castrol India Limited.
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The Offer: Stonepeak and CPPIB have launched an offer to buy up to 26% of the Indian unit at ₹194.04 per share.
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Market Reaction: Castrol India shares went on a roller coaster today, surging nearly 9% to a high of ₹202.50 before settling back to close around ₹189. It’s a bit of a “buy the rumor, sell the news” situation, but the premium offer price is now the floor.
What’s Next for Castrol?
| Stage | Expected Timeline |
| Global Close | Expected by End of 2026 |
| India Open Offer | To proceed post-completion |
| bp Lock-up | 2-year period before they can sell the remaining 35% |
It’s an ongoing situation where Stonepeak is known for a “take-private” playbook. While Castrol India remains listed for now, the shift in control to a private equity giant has Dalal Street wondering if this “dividend king” will eventually be delisted.
The deal marks a huge win for bp’s 20 billion divestment program, of which they’ve now cleared about half. For Castrol, it’s a shift from being a branch of an oil major to being a standalone infrastructure asset—essentially moving from the gas station to the data center.
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