(Reuters) – Oil major BP is considering a potential sale of its lubricants business, Castrol, which could be worth about $10 billion in a deal, Bloomberg News reported on Tuesday, citing people familiar with the matter.
A sale of the business is one of the many options BP is considering to win back investor confidence after years of underperformance, the report said, adding that the unit is also among the assets that Elliott Management has identified for potential disposals.
The announcement of a potential divestment could be announced during BP’s capital markets day on February 26, the report said.
Activist investor Elliott Management built nearly a 5% stake in BP and is pushing the oil company to take radical action to enhance its performance, including a big divestment programme, Reuters reported last week, citing sources.
BP did not immediately respond to a Reuters request for comment.
(Reporting by Devika Nair in Bengaluru; Editing by Alan Barona)
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