Stonepeak buys stake in Castrol from BP for $10.1bn

March 2026 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

March 2026 Issue

Stonepeak has agreed to acquire a majority controlling interest in Castrol from BP in a transaction valued at approximately $10.1bn. BP will retain a 35 percent minority interest while Canada Pension Plan Investment Board (CPP Investments) will invest up to $1.05bn, resulting in an indirect stake in the business.

The deal forms part of BP’s wider strategy to streamline its portfolio and focus on areas positioned for long term transition growth. The announcement was made in December 2025, and the transaction remains on track to close by the end of 2026, subject to customary regulatory approvals. The companies involved have stated that the agreement also reflects growing investor interest in energy related industrial assets capable of supporting both traditional markets and emerging low-carbon technologies.

Castrol remains one of the world’s most recognisable lubricant brands and has supplied products to the automotive, industrial, marine and energy sectors for more than 125 years. Its long history includes involvement in landmark engineering achievements, from early aviation to motorsport, and it maintains an extensive global manufacturing and distribution network. Castrol’s brand identity continues to be shaped by its association with innovation and technical performance, themes echoed in the statements issued by the partners to the transaction.

“Lubricants are a mission-critical product, which are essential to the safe and efficient functioning of virtually every vehicle, machine and industrial process in the world,” said Anthony Borreca, senior managing director and co-head of energy at Stonepeak. “Castrol’s heritage has created a leading market position, an iconic brand and a portfolio of differentiated products that deliver meaningful value to its customers.”

CPP Investments also emphasised the future growth potential of the business, particularly in areas connected to electrification, digital infrastructure and specialised industrial processes. Bill Rogers, managing director and head of sustainable energies at the fund, noted that Castrol’s reputation for quality and technical expertise positions it to play an increasingly relevant role in markets such as electric mobility and data centre cooling. “We believe Castrol’s strong market position and diversified growth opportunities will deliver attractive risk adjusted returns for the CPP Fund,” said Mr Rogers. “Our investment alongside Stonepeak aligns with our strategy of backing businesses that are essential to the energy system.”

Stonepeak, which manages approximately $80bn of assets, specialises in infrastructure and real assets. Its investment model focuses on financing and supporting businesses that provide essential services, and its acquisition of Castrol aligns with its strategic priorities in energy, industrial processing and transport infrastructure. The firm stated that its intention is to support Castrol’s continued development while maintaining the stability of the brand, workforce and product lines. Stonepeak has also highlighted the importance of strengthening Castrol’s global reach as demand for advanced lubricants evolves across both established and emerging industries.

Michelle Jou, global chief executive of Castrol, welcomed the new ownership structure. “We are thrilled to have Stonepeak join us as a partner in Castrol,” she said. “Stonepeak’s capital support, energy sector expertise and experience working with similar companies that provide essential services will be immensely additive in helping the business to innovate and grow. This transaction reflects our commitment to investing in the future and creating new opportunities for growth and success at Castrol, and we are proud that Stonepeak shares in our vision for the business as we take the next step in our journey.”

Legal counsel to Stonepeak is being provided by Simpson Thacher & Bartlett LLP and DLA Piper while Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as financing counsel. UBS is serving as financial adviser.

Mr Borreca concluded: “We are excited to work alongside Castrol’s talented employees, coupled with bp’s continued guidance as a minority interest holder, as we support the business’s continued growth.”

Fraser Tennant