LONDON (dpa-AFX) - Energy major BP p.l.c. (BP.L) said Monday that it has closed the sale of a 65% stake in its lubricants business Castrol to Stonepeak.
The company said it will use the proceeds of $6 billion to reduce debt.
The transaction includes minority interests in Castrol's operations in several markets, including India (49%), Vietnam (35%), Saudi Arabia (50%) and Thailand (40%), as well as other jurisdictions.
Following the deal, bp retains a 35% stake in Castrol, which it will account for as an equity investment. After a two-year lock-up period, bp will have the option to sell its remaining stake.
bp does not expect to recognize earnings or receive dividends from its retained stake in the short to medium term, as Stonepeak has a preference on distributions.
'This deal brings meaningful cash proceeds to bp today while retaining a valuable stake in Castrol's future growth,' said Meg O'Neill, bp CEO.
On the LSE, BP shares were down 1.53% at 617.90p on Monday.
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