Canada Pension Plan Investment Board agreed to acquire an indirect, non-controlling stake in Castrol as part of a transaction valued at about $10.1 billion, the investor said on its website.
The deal involves CPP Investments investing up to $1.05 billion alongside Stonepeak, which is acquiring a majority controlling interest in the lubricants business from bp. The transaction is expected to close by the end of 2026, subject to regulatory approvals, and bp will retain a minority interest after completion.
The investment highlights continued private equity and infrastructure investor interest in established lubricants businesses as they support transportation and industrial activity during a period of gradual energy transition. Lubricants suppliers serve automotive, commercial and industrial markets that are expected to require ongoing maintenance products even as fleets evolve and efficiency standards tighten.
Castrol operates within bp’s global lubricants portfolio and supplies engine oils, industrial fluids and greases through a manufacturing and distribution network that spans more than 150 countries. Stonepeak will assume majority ownership of the business, while CPP Investments will participate as a minority investor. In a related move, a mandatory tender offer to public shareholders of Castrol India Ltd. has been announced in line with Indian takeover rules and will follow the closing of the main transaction.
“Castrol’s market position and diversified growth opportunities offered attractive risk-adjusted returns for the fund,” said Bill Rogers, managing director and head of sustainable energies at CPP Investments.