BP Divestment Strategy Amid CEO Shakeup and Activism

27 days ago

Kit Reese

"So, BP has agreed to sell a majority stake in its Castrol business to Stone Peak Partners. So Castrol it makes lubricants for autos and industries and it has also been developing a liquid cooling technology for use in AI data centers. So BP will raise around $6 billion for 65% stake in the group and it looks like the deal will be completed by the end of next year. So, it's been it's been a really busy year for BP as you mentioned. You know, they are replacing their CEO after just two years in the job and it's really come under pressure from an activist investor Elliot to pivot back towards fossil fuels after a not particularly successful foray into renewables."

BP is executing a significant divestiture of its Castrol business as part of a broader strategy to refocus on core oil and gas operations amid a troubled CEO tenure and activist pressure. The maneuver, expected to complete by the end of next year, aims to raise $6 billion. However, BP's shares have underperformed compared to the broader energy sector, indicating market skepticism regarding its strategic pivot.

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