Latham Advises on Financing for Stonepeak’s Acquisition of Majority Controlling Interest in Castrol From BP

Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, has announced an agreement to acquire a majority controlling interest in Castrol, a global leader in lubricants, from BP p.l.c. (bp) (NYSE: BP) (LON: BP), in a transaction valuing the business at an enterprise value of approximately US$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. The transaction is expected to close by end of 2026, subject to customary regulatory approvals.

Latham & Watkins LLP represented the financing sources in the transaction with a cross-border team in the US and UK led by partners Alfred Xue, Stelios Saffos, Dan Seale, Keith Halverstam, Jennifer Engelhardt, Senet Bischoff, Jesse Sheff, Andrew Baker, Conray Tseng, Josh Holt, Nicole Fanjul, Joydeep Choudhuri, Victor Ludwig, John Lister, and Tracy Liu, and counsel Kelly Egers and Gemma Mootoo Rajah, with associates Carlos Ibarguengoitia, Hai Pham, Simba Gonondo, Amishi Magdani, Kristin Tesi, Abdullah Khan, Ivan Alaev, Jade Lee, and with assistance from April Yoon and Dorian Refloc’h.