Ex-Shell CEO van Beurden to chair Castrol as Stonepeak closes deal with BP
BP•Stonepeak completed its acquisition of a 65% stake in Castrol from BP, which will retain 35% in a new joint venture. Former Shell CEO Ben van Beurden will chair Castrol’s board, and BP said it would use $6 billion in after-tax proceeds to reduce debt and bolster its finances.
1. Castrol board changes
Stonepeak said former Shell CEO Ben van Beurden will chair Castrol’s new board after it completed its acquisition of a 65% stake in the lubricants maker from BP. The board includes four independent directors, including van Beurden, three Stonepeak-affiliated directors, two BP directors and one director from CPP Investments, which is also investing as an indirect minority holder.
2. BP proceeds and debt
BP will retain a 35% stake in a new joint venture with Stonepeak. Chief Executive Meg O’Neill said the deal brings meaningful cash proceeds while allowing BP to retain a stake in Castrol’s future growth. BP said it would use $6 billion in after-tax proceeds to reduce debt and bolster its finances; its net debt fell to $13.9 billion, reaching its target a year ahead of schedule.
