The Canada Pension Plan Investment Board has agreed to acquire an indirect, non-controlling interest in Castrol as part of a transaction that values the global lubricants business at approximately US$10.1 billion.

CPPIB will invest up to US$1.05 billion alongside Stonepeak, which is acquiring a majority controlling interest in Castrol from BP p.l.c. The partners said the transaction is intended to support Castrol’s next phase of growth.

“Castrol is a high-quality, global business at the heart of the energy and industrial economy. Its cutting-edge innovations and premium brand position it well for a growing role in emerging applications, from electric vehicles to data centres,” said Bill Rogers, managing director and head of sustainable energies at CPPIB. “Our investment alongside Stonepeak aligns with our strategy of backing businesses that are essential to the energy system. We believe Castrol’s strong market position and diversified growth opportunities will deliver attractive risk-adjusted returns for the CPP Fund.”

Stonepeak said Castrol’s scale and market position underpin its investment thesis. BP will retain a minority ownership interest.

“Lubricants are a mission-critical product, which are essential to the safe and efficient functioning of virtually every vehicle, machine, and industrial process in the world,” said Anthony Borreca, senior managing director and co-head of energy at Stonepeak. “Castrol’s 126-year heritage has created a leading market position, an iconic brand, and a portfolio of differentiated products that deliver meaningful value to its customers.”

Castrol is one of the world’s largest lubricants providers, serving consumer automotive, commercial and industrial markets. The company manufactures and markets engine oils, industrial fluids and greases through a global network of blending plants, third-party facilities and warehouses operating across roughly 150 countries, and is known for its long-standing brand and technical expertise.

The transaction is expected to close by the end of 2026, subject to customary regulatory approvals. CPPIB said a mandatory tender offer to public shareholders of Castrol India Limited will be pursued following completion of the transaction, in accordance with Indian takeover regulations.

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