BP agrees deal to sell £7.4bn stake in Castrol to US investment firm

Thursday, December 25, 2025 -BP has reached a major agreement to sell its entire stake in Castrol, the renowned lubricants brand, to a US-based investment firm for £7.4 billion. The deal marks a significant move in BP’s ongoing strategy to focus on its core energy and renewable operations, signaling a sharper focus on low-carbon investments while divesting non-core assets. 

Industry analysts say this sale could free up capital for BP to accelerate its green energy projects and strengthen its balance sheet amid volatile oil markets.

The transaction, expected to close within the next few months pending regulatory approval, positions Castrol for potential growth under new ownership. 

The US investment firm has already outlined plans to expand Castrol’s global footprint, invest in next-generation lubricants, and enhance digital solutions for automotive and industrial clients. BP, meanwhile, will retain a limited strategic interest to ensure a smooth transition and ongoing collaboration in key markets.

Market reactions have been largely positive, with BP shares seeing a modest uptick following the announcement. Investors are viewing the sale as a pragmatic move to streamline operations and capitalize on Castrol’s robust brand value. 

Analysts predict that this infusion of capital could accelerate BP’s green energy targets, making the company more competitive in an energy landscape increasingly focused on sustainability and innovation.