Nov 2 (Reuters) – Former Shell CEO Ben van Beurden will chair Castrol’s board after Stonepeak completed its acquisition of a 65% stake in the lubricants maker from BP (BP.L), on Monday, the US private equity firm said.
BP agreed the stake sale last year and will retain a 35% stake in a new joint venture with Stonepeak. The oil major separately confirmed on Monday that it would use $6 billion in after-tax proceeds to trim debt and bolster its finances.”This deal brings meaningful cash proceeds to bp today while retaining a valuable stake in Castrol’s future growth,” BP Chief Executive Meg O’Neill said in a statement.
BP’s net debt has fallen to $13.9 billion, allowing it to reach its net debt target a year ahead of schedule, it said last week.
Stonepeak said in conjunction with the closing, Castrol has appointed a new board chaired by van Beurden, the former CEO of Shell (SHEL.L), and current chairman of Clariant AG (CLN.S),
The board will include four independent directors including the chair, three directors affiliated with Stonepeak, two directors from BP and one director from CPP Investments, which is also investing as an indirect minority holder.
Reporting by Yadarisa Shabong in Bengaluru; Editing by Sonia Cheema
