BP’s Castrol Unit Attracts Interest from Reliance and Global Investors

BP ’s public limited company Castrol lubricant division has become a hot topic in global investment circles, drawing attention from major energy and investment players. Leading the pack is India’s Reliance Industries, alongside global private equity firms such as Apollo Global Management and Lone Star Funds. 

Other potential bidders include Brookfield Asset Management and Stonepeak Partners. Even energy giant Saudi Aramco is reportedly weighing its options, considering a bid for the iconic brand.

Deal Value Estimated Up to $10 Billion

The potential deal value for Castrol is estimated between $8 billion and $10 billion. While discussions are still in the early stages, initial bids are expected to roll in over the coming weeks. According to sources familiar with the matter, bidders may look to form consortiums (groups of companies) to strengthen their offers. With such a significant price tag, financing is also expected to play a key role in the bidding process.

Financing Moves in the Works

Bankers are currently exploring options to back the acquisition with debt financing worth around $4 billion. The financing package could be made up of leveraged loans and high-yield bonds and will likely be offered in multiple currencies including euros and dollars. As one of the few large buyout financings anticipated this year, it is likely to draw keen interest from both bankers and investors.

Why BP Is Selling?

The possible sale of Castrol comes as part of BP’s broader strategic review. The company is undergoing a major corporate reshuffle to reshape its future amid changing market conditions. Lower oil prices have added pressure to speed up this transition and unlock value from existing assets. The influence of activist investor Elliott Investment Management—now one of BP’s largest shareholders—is also pushing the company to accelerate its transformation.

Castrol India Share Price Today

Following the news on Thursday, May 29, 2025, 12.10 P.M Castrol India share price jumped 4.64% to ₹216.12 on the NSE, up from the previous close of ₹206.54. The company's market capitalisation reached ₹21,364 crore. The stock had touched a 52-week low of ₹162.80 on 28 January 2025 and a 52-week high of ₹284.40 on 27 August 2024.

Castrol’s Growing Appeal

Castrol is a widely recognised name in the lubricant market, offering a broad range of products for automotive and industrial use. More recently, it has ventured into developing liquid cooling solutions for AI data centres, making it an attractive prospect for buyers looking to tap into emerging technology trends. Its strong global presence and legacy make it a strategic asset for any acquirer.

As the bidding race heats up, all eyes will be on how BP handles one of its most recognisable and valuable businesses. The coming weeks will determine whether Castrol changes hands—and who the new owner might be.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.