2nd Jun 2025 12:38
(Alliance News) - The offer for sale of the Castrol lublicants business of BP PLC has attracted interest, but some possible bids may be below the USD8 billion the UK oil major needs to meet its target of USD20 billion by 2027, the Financial Times reported on Sunday.
The sale process is being run by Goldman Sachs and has seen interest from private equity firms Apollo Global Management Inc and Lone Star Funds and from Chinese state investor Citic Ltd, as well as trade buyers, including India's Reliance Industries Ltd and Saudi Arabian Oil Co, known as Aramco. However, some bidders for Castrol are exploring valuations of less than USD8 billion, the newspaper said, citing "people with knowledge of the matter".
Back in February, BP said it is aiming for USD20 billion worth of deals to be announced by the end of 2027. It said proceeds from a "strategic review of Castrol" and bringing a "partner into Lightsource" will go towards boosting its balance sheet. Castrol is part of the Downstream business of BP, while Lightsource is a solar power developer.
The announcement came as BP set out a "fundamentally rest strategy", backing away from green investments under pressure from activist investor Elliott Investment Management.
The FT on Sunday noted that analysts have questioned the valuation of Castrol, as electric vehicles, which need less lubrication, increase market share.
BP shares were up 0.9% to 363.00 pence midday Monday.
By Tom Waite, Alliance News editor
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