BP is in active negotiations with investment firm Stonepeak over the sale of its Castrol lubricants unit, according to two people with knowledge of the situation…
BP is in active negotiations with investment firm Stonepeak over the sale of its Castrol lubricants unit, according to two people with knowledge of the situation, in what would be a major step in meeting the energy company's $20 billion divestment goal.
The sale process for Castrol began earlier this year after the London-listed oil major said in February it had put the century-old lubricants business under review as part of a broader strategy shift away from renewable energy.
In September, both Stonepeak and private equity firm One Rock submitted bids for the unit, one of the people and a third one said, speaking on condition of anonymity because the matter is private. The sources cautioned no deal may materialize.
Reuters could not determine whether BP is still in discussions with One Rock or any other parties, and details about the value or structure of Stonepeak's offer also could not be learned. Market expectations, according to RBC analysts, place the value of the Castrol sale at around $8 billion in recent weeks.
Representatives for BP, Stonepeak and One Rock declined to comment. BP's US listed depository receipts jumped 2% after the Reuters report before paring back the gains.
BP has vowed
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