CD&R joins race for BP’s $8 billion Castrol unit, Sky News reports

Published 01/07/2025, 20:42
© Reuters

Investing.com -- Private equity firm Clayton Dubilier & Rice has entered the competition to acquire Castrol, BP (NYSE:BP)’s lubricant business valued at approximately $8 billion, according to Sky News, citing sources familiar with the matter.

The firm joins several other bidders in the auction for the BP unit, including Apollo Global Management (NYSE:APO), Lone Star Funds, and India’s Reliance Industries (NSE:RELI), whose involvement Bloomberg News previously reported.

CD&R’s bid adds an interesting dimension to the sale process due to its connection with BP’s leadership. Helge Lund, the current chairman of BP’s board who is scheduled to step down within the next 12 months, serves as an operating advisor to CD&R.

Sources close to the matter have indicated to Sky News that Lund is not participating in CD&R’s offer for the Castrol division. 

The Castrol divestiture is part of BP’s broader strategy to streamline its portfolio and unlock capital amid growing pressure from activist investor Elliott Investment Management. Elliott’s involvement comes at a pivotal moment, as BP has reversed parts of its earlier shift toward renewables and renewed its focus on oil and gas.

Representatives from BP and CD&R have yet to respond to Investing.com’s request for comment.

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