Simpson Thacher is advising Stonepeak on its acquisition of a majority controlling interest in Castrol, a global leader in lubricants, from BP p.l.c (“bp”), in a transaction valuing the business at an enterprise value of approximately $10.1 billion. bp will retain a 35% minority interest in Castrol as part of the transaction. In connection with the transaction, Canada Pension Plan Investment Board will invest up to USD$1.05 billion in support of the transaction, resulting in an indirect stake in Castrol.
Castrol is one of the largest lubricants providers globally and serves consumer automotive customers, as well as commercial and industrial end markets. Castrol manufactures and markets engine oils, industrial fluids, and greases through approximately 20 blending plants and more than 100 third-party facilities and warehouses worldwide across 150 countries.
The Simpson Thacher team includes Paul Foote, Amy Mahon, Eleanor Milne, Jonathan Stradling, Ciaran Cronin, Diogo Morgado Filipe, Bella Sullivan, Steven Hood, Neha Goyal and Elizabeth Lee (M&A); Yash Rupal, Caleb McConnell, Chris Dorman, Tim Wells and Cassandra Hamill (U.K. Tax); Jonathan Goldstein and Jemma Li (U.S. Tax); Josh Buckland, Sandeep Mahandru, Antti Kunnari and Jessie Li (Antitrust); Abram Ellis, David Caldwell, Julien Tunney and Cary Milanes (Regulatory); Matt Feehily, Emily Holland and Carina Mitchell (ESG); and Deborah Gruen (Funds).