24th Dec 2025 07:48
(Alliance News) - BP's sale of its Castrol lubricants business for USD10 billion headlines a shortened trading session on Wednesday, as the London Stock Exchange closes early at 12:30 GMT for Christmas Eve and remains shut on Thursday and Friday for the holiday break.
London shares were called to open slightly lower, but the pound rose back above USD1.35.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 0.1% at 9,880.82.
GBP: higher at USD1.3516 (USD1.3481 at previous London equities close)
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BROKER RATINGS
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Santander starts Reckitt Benckiser with 'outperform' - price target 7,030 pence
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Barclays raises Jet2 price target to 2,125 (2,080) pence - 'overweight'
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COMPANIES - FTSE 100
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BP agrees to sell a 65% stake in its Castrol lubricants business to Stonepeak Partners LP at an enterprise value of USD10 billion. BP will receive around USD6 billion in net proceeds, which it will use to reduce debt. The transaction follows BP's strategic review of Castrol and is intended to simplify its portfolio and sharpen its focus on its core downstream operations. Earlier this month, the Financial Times reported that Stonepeak had emerged as the leading contender after BP reportedly set an asking price of around USD8 billion. BP says the sale "significantly strengthens" its financial position and accelerates delivery of its reset strategy. BP will retain a 35% stake in a new joint venture with Stonepeak, giving it continued exposure to Castrol's growth plans, which have produced nine consecutive quarters of year-on-year earnings growth, it notes. BP has the option to sell its remaining stake after a two-year lock-up period. Completion is expected by the end of 2026. BP says the deal brings completed or announced disposals to USD11 billion, more than half of its USD20 billion divestment target.
BP interim CEO Carol Howle calls the sale "a very good outcome for all stakeholders". Last week, Murray Auchincloss departed abruptly as BP CEO. He will be replaced by Woodside Energy Group Ltd boss Meg O'Neill come April next year. Howle stepped up in the interim from executive vice president, supply, trading & shipping.
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COMPANIES - FTSE 250
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Supermarket Income REIT buys three UK supermarket properties - a Tesco in Aylesbury, a Sainsbury's in Sale and a Waitrose in Frimley - for a combined GBP97.6 million, reflecting an average net initial yield of 5.5%. The sites have leases of 11 to 16 years with inflation-linked rent reviews. The deals are funded through existing debt, with pro-forma LTV expected at 43% and investment-grade tenant exposure rising to 75%. CEO Rob Abraham says the acquisitions cap a "transformational year".
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OTHER COMPANIES
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B Hodl says it has approved a strategic bitcoin-backed loan framework, allowing the company to take out interest-only loans secured against its bitcoin holdings through CoinCorner Ltd. Loans will carry a 50% loan-to-value cap, maturities of up to four years, and total outstanding exposure limited to 20% of the firm's bitcoin treasury value. Funds raised will be used to buy additional bitcoin as part of the company's treasury-growth strategy. Each loan will be priced at prevailing market rates, and drawdowns will be announced when made. The arrangement is a related party transaction, as CoinCorner is a "substantial" shareholder. Independent directors say the terms are "fair and reasonable" for shareholders. CEO Freddie New says: "This new strategy provides a flexible and efficient source of bitcoin that aligns with our long-term approach of strengthening the company's bitcoin position."
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Celsius Resources says it is in discussions with a financial advisory firm to help finalise financing for its Maalinao-Caigutan-Biyog copper-gold project in the Philippines. The company reports "strong interest" from several international mining groups offering structured debt, metal streaming, offtake arrangements and potential project-equity participation. Celsius has delayed publication of the project's final feasibility study to January 2026, citing the need to confirm two isolated metallurgical test results that fell outside the otherwise consistent findings. All other components of the study, including mine plan, process design, and cost estimates, have been completed. The company says any adjustments from the additional testwork are expected to be minor.
A search for a new chair remains ongoing after former Executive Chair Julito Sarmiento announced his retirement in October. Executive Director Neil Grimes says the short delay will allow Celsius to deliver a high-quality, investment-ready study and support financing decisions as it aims to move the MCB project into construction in 2026.
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By Eva Castanedo, Alliance News reporter
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