BP is thinking about selling its Castrol motor oil division in a deal that could be worth £8billion. The British energy giant is under pressure from investors – including activist Elliott Management which has built a 5 per cent stake – to shake-up the business and boost its share price.
Chief executive Murray Auchincloss will next week present his plan to investors having promised a ‘new direction’ for the company. The Mail last week revealed BP could sell Castrol – which it bought for £4billion in 2000 – offload its US shale business and quit the electric vehicle charging market.
A merger with an oil rival remains firmly on the table, with Shell or Chevron touted as potential buyers. According to Bloomberg, talks about selling Castrol are under way and the plans could be announced at the capital markets day next Wednesday. Speculation over the sale came as a group of 48 institutional investors – including Rathbones Investment Management, Phoenix Group and Royal London Asset Management – demanded shareholders are given a vote on any plan by BP to water down its climate goals.
Shake-up: BP Boss Murray Auchincloss (pictured) will next week present his plan to investors having promised a ‘new direction’ for the company. Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
