Reliance India, Aramco Eye Castrol’s Global Lubricants Business Deal

30 May, 2025

BP’s Castrol lubricant business is garnering significant interest from major energy companies and private equity firms. Among the potential buyers are India’s Reliance Industries and Saudi Arabia’s Aramco, along with buyout firms like Apollo Global Management and Lone Star Funds. BP has initiated the bidding process by sharing initial information with other interested parties, including Brookfield Asset Management and Stonepeak Partners.

The Castrol business, valued between $8 billion and $10 billion, is considered a highly attractive asset due to its global presence and strong brand in the lubricant sector. The potential buyers may submit their initial bids within the coming weeks, though the process is still in its early phases. As such, the final price and outcome remain uncertain, and some bidders might collaborate on joint offers to strengthen their positions.

While BP and the involved firms have declined to comment, the move signals a strategic effort by BP to possibly divest non-core assets as part of its broader corporate strategy. Reliance Industries, known for its aggressive expansion in the energy sector, is among the leading contenders looking to boost its footprint in lubricants through this acquisition.

Saudi Aramco, the world’s largest oil producer, also sees strategic value in expanding its product portfolio through Castrol’s global operations. Private equity firms such as Apollo, Lone Star, Brookfield, and Stonepeak bring financial muscle and experience in managing large-scale acquisitions, further intensifying the competitive landscape.

The outcome of this bidding process could reshape the global lubricant market by introducing new ownership and potentially accelerating growth initiatives. As the auction progresses, stakeholders and industry watchers will closely monitor developments to gauge the future direction of Castrol’s business and its impact on global energy and lubricant sectors.

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