BP PLC’s Castrol Sprayant Business attracts interest from energy companies, including Reliance Industries LTD and buyout companies such as Apollo Global Management and Lone Star Funds, according to people with knowledge of the business.
BP has sent initial information to other potential bidders for unit, including investment companies Brookfield Asset Management and Stonepeak Partners, said the people who asked not to be identified because discussions are private. The company could get in a deal between $ 8 billion and $ 10 billion, the people said.
The Vrijers would join the world’s largest energy company, Saudi Aramco, with the consideration of bids for the whole thing or part of the company. The process is still in the early stages, with initial bids that are expected within a few weeks, so the price and the result remain open, the people said. Some lovers could also work together.
In the meantime, according to people who are familiar with the issue, bankers are considering providing around $ 4 billion equivalent of debts to support potential bids for unity. The financing is expected to be expressed in different currencies, including euros and dollars to maximize liquidity, and will be made possible from lever loans and high efficiency bonds, they added. It is one of the few buy finance that is expected to be on the market this year and will probably get the attention of both bankers and investors.
As part of a large business admission, BP started a strategic assessment of the company in Castrol brand. Activist -investor Elliott Investment Management has emerged as one of the largest shareholders in the company and has insisted on management to make changes to more brave.
The large strategy reset from BP already looks shaky due to lower oil prices. This can increase the pressure on the company for successful sales of assets.
The Castrol company comprises lubricants for cars and industries and has developed liquid cooling technology for data centers for artificial intelligence. The activities in fast -growing markets such as India are especially interesting for reliance and Aramco, some people said. The subsidiary Castrol India LTD, listed by Mumbai, has a market value of around $ 2.4 billion.
BP shares have fallen almost 9 percent this year, which means that the company has a market value of around £ 57.1 billion ($ 77 billion).
Representatives of BP, Apollo, Lone Star, Brookfield and Stonepeak refused to comment, while a representative for reliance was not immediately available for comment.
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Published on 29 May 2025
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