DLA Piper advises Stonepeak on Acquisition of Majority Controlling Interest in Castrol from bp

DLA Piper is advising Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, on its proposed acquisition of a majority controlling interest in Castrol, a global leader in lubricants, from BP p.l.c. (“bp”). The transaction values the Castrol business at an enterprise value of approximately USD10.1 billion and is expected to close by the end of 2026, subject to customary regulatory approvals.

bp will retain a 35% minority interest in Castrol and, in connection with the transaction, Canada Pension Plan Investment Board ("CPP Investments") will invest up to USD1.05 billion to acquire an indirect stake in Castrol.

Castrol is one of the largest lubricants providers globally and serves consumer automotive customers, as well as commercial and industrial end markets. The Company manufactures and markets engine oils, industrial fluids and greases through approximately 20 blending plants and more than 100 third-party facilities and warehouses worldwide across 150 countries. Applications have included servicing the first jet airline, the Concorde, space missions for over 60 years, and many professional auto and bike racing teams, establishing Castrol’s historic and trusted brand identity. The Company’s products are recognized globally for their high performance, premium quality, and use of cutting-edge technology, and are supported by a global workforce of thousands of skilled professionals.

Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets with approximately USD80 billion of assets under management. As a sponsor of private equity and credit investment vehicles, Stonepeak provides capital, operational support, and committed partnership to grow investments in its target sectors, which include digital infrastructure, energy and energy transition, transport and logistics, and real estate.

The DLA Piper team is advising Stonepeak across 20 jurisdictions and includes Tracey Renshaw, Paul Doris, Steven Bryan, Rob Salter and Sarah Riley (Corporate), Jo Owen (Real Estate), Clare Gregory, Tamara Calvert and Nick Hipwell (Employment, Pensions and Incentives), Nick Rock (EHS), Ruth Hoy (Intellectual Property and Technology), Iain Elder (Finance and Projects) and James Carter (Litigation & Regulatory).

Tracey Renshaw (Location Head, London Corporate) commented: "Our global team is delighted to be supporting Stonepeak on its acquisition of a majority controlling interest in Castrol, one of the world's leading lubricant brands, Lubricants are a critical element of the energy and industrial economy and Castrol's 126 year heritage and iconic brand places it at the heart of the energy ecosystem. Our team of M&A and sector specialists has worked alongside the Stonepeak team and its other advisers (including Simpson Thacher & Bartlett) so as to ensure that Stonepeak, CPP Investments and bp are best placed to hit the ground running on implementing their shared vision for this business."