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Stock impact report

BP to Sell 65% Stake in Castrol to Stonepeak for $10B EV [Yahoo! Finance]

BP p.l.c. (BP) 
Last bp p.l.c. earnings: 4/29 04:01 pm Check Earnings Report
Company Research Source: Yahoo! Finance
The leading integrated player has the option to sell this remaining stake after a lock-up period of two years. BP estimated the enterprise value to be around $10.1 billion implying it will receive around $6 billion in net proceeds from the sale. BP expects to close the deal by 2026 end following regulatory approvals. This move aligns with BP's strategy to reduce its debt profile and focus on more profitable and attractive businesses. The company had previously announced a goal to divest $20 billion of assets. With the inclusion of the Castrol deal, BP now has $11 billion of divestments planned, some of which have already been completed. Following this transaction, BP expects to reduce its debt to $14-$18 billion (by the end of 2027) from $26.1 billion reported in its third-quarter earnings update. Notably, BP is divesting non-profitable businesses to strengthen its business model. With a Zacks Rank #3 (Hold), the company believes that, over the long term, these moves will enhanc Show less Read more
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