Castrol, one of the world’s best-known lubricants brands, is set to come under new ownership after bp secured approval to sell the business to investment firm Stonepeak.
The transaction, which has been approved without conditions by the Namibia Competition Commission (NaCC), will see Motion JVCo Limited acquire all the shares and voting rights in Castrol Group Holdings Limited, marking another milestone in bp’s strategy to reshape its global business portfolio.
Castrol develops, manufactures and sells lubricants, greases, coolants and related fluids used across the automotive, industrial, energy and marine sectors.
Although the company has no direct operations in Namibia, its products are supplied locally through third-party distributors and remain among the country’s best-known lubricant brands.
The acquiring company, Motion JVCo Limited, is a newly established special purpose vehicle whose shareholding is held by Stonepeak Motion Holdco Limited and ultimately controlled by Stonepeak Partners LP, a leading global alternative investment firm specialising in infrastructure and real assets.
The acquiring group has no business activities in Namibia, with its existing investments largely concentrated in infrastructure and logistics, including ownership and leasing of standard dry freight and refrigerated intermodal containers, as well as other transport assets.
Castrol Group Holdings is currently controlled by bp plc, the London Stock Exchange-listed global energy company.
Beyond its traditional association with oil and gas, bp has built Castrol into one of the world’s leading lubricant businesses, supplying products to customers in more than 150 countries.
The Commission classified the deal as a conglomerate merger and identified the relevant market as the supply of lubricants in Namibia. Following its assessment, it concluded that the transaction would not prevent or substantially lessen competition, strengthen a dominant market position or give rise to any public interest concerns.
“The Commission found the proposed transaction unlikely to result in the prevention or substantial lessening of competition or result in any undertaking to acquire or strengthen a dominant position in the market and did not raise any public interest concerns,” the Commission said.
The approval clears the way for the transfer of ownership of the Castrol business from bp to Stonepeak, while ensuring continuity of supply of Castrol lubricants to the Namibian market through the brand’s existing third-party distribution network.
The transaction forms part of bp’s broader programme of portfolio optimisation as the global energy company continues to streamline its operations and focus investment on its core strategic businesses, while Stonepeak expands its portfolio of infrastructure and industrial assets through the acquisition of one of the world’s most recognised lubricant brands.
