(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, the report said, adding that the unit is also among the assets that Elliott Management has identified for potential disposals.
Elliott declined to comment and BP did not immediately respond to a Reuters request for comment.
Last week, Reuters reported that Elliott is pushing the oil company to take radical action to transform its performance after building a 5% stake, which includes a big divestment programme. It is engaging with the company in advance of its Capital Markets Day, scheduled for February 26.
The company might announce the potential divestment during its Capital Markets Day, Bloomberg added.
Last Monday, BP’s shares were on track for their biggest daily gain in two years after Reuters reported that the activist shareholder will press for board changes and strategy shifts in order to boost returns.
Last Wednesday, the company posted a year-on-year 61% drop in fourth-quarter profits, the weakest period since the fourth quarter of 2020, when pandemic lockdowns shrank demand for oil.
BP’s lubricant brand Castrol serves customers in over 150 countries in the automotive, marine, industrial, aerospace and energy production sectors, according to BP’s website.
(Reporting by Devika Nair in Bengaluru; Editing by Alan Barona)
