Saudi Aramco Exploring Initial Bid for BP's Castrol Unit, Source Says
BP's lubricant business Castrol is expected to be worth $6 billion to $8 billion, according to analyst Ashley Kelty. The business has been put up for sale as part of a strategic review by the company. BP has underperformed peers and faced increasing pressure to change strategy after activist investor Elliott Investment Management built a 5% stake in the company.
- The potential sale of Castrol would provide Saudi Aramco with a significant opportunity to expand its presence in the lubricants market, potentially bolstering its position as one of the world's largest oil producers.
- How will the sale of BP's Castrol unit impact the global competition in the lubricants industry, and what implications could this have for consumer-facing brands that rely on lubricant suppliers?