CPP Investments Partners with Stonepeak in $10.1B Castrol Transaction

The Facts -

CPP Investments Joins Stonepeak in Major Castrol Acquisition

In a significant financial move, CPP Investments teams up with Stonepeak to support the growth of Castrol, a renowned player in the lubricants industry.

Toronto, CANADA (December 24, 2025) – The Canada Pension Plan Investment Board (CPP Investments) has announced a notable partnership with Stonepeak, an alternative investment firm known for its expertise in infrastructure and real assets, by acquiring a non-controlling stake in Castrol. This agreement sees Stonepeak taking over a majority interest from BP p.l.c., positioning Castrol at a valuation of about US$10.1 billion. CPP Investments is committing up to US$1.05 billion to facilitate this transaction.

Castrol, a global icon in the lubricant sector, caters to a variety of clients, from consumer automotive to industrial markets. As a key player in the vast global lubricants market, Castrol collaborates closely with clients to provide highly specialized lubricants tailored to specific needs. Its extensive product line includes engine oils, industrial fluids, and greases, manufactured in around 20 blending plants and distributed through over 100 facilities and warehouses across 150 countries. Castrol’s legacy includes supporting the Concorde jet, space missions, and numerous professional racing teams, solidifying its reputation for high performance and advanced technology, backed by a team of skilled professionals worldwide.

Bill Rogers, Managing Director, Head of Sustainable Energies at CPP Investments, remarked, “Castrol is a high‑quality, global business at the heart of the energy and industrial economy. Its cutting-edge innovations and premium brand position it well for a growing role in emerging applications, from electric vehicles to data centres.” He emphasized the strategic alignment of investing in businesses crucial to the energy system with Castrol’s strong market position promising attractive returns for the CPP Fund.

Stonepeak’s Anthony Borreca, Senior Managing Director and Co-Head of Energy, described lubricants as essential to the functioning of vehicles, machinery, and industrial processes worldwide. “Castrol’s 126-year heritage has created a leading market position, an iconic brand, and a portfolio of differentiated products that deliver meaningful value to its customers. We are excited to work alongside Castrol’s talented employees, coupled with bp’s continued guidance as a minority interest holder, as we support the business’s continued growth,” Borreca stated.

The transaction is anticipated to be finalized by the end of 2026, pending customary regulatory clearances.

Additionally, a mandatory tender offer (MTO) announcement was made today concerning public shareholders of Castrol India Limited, adhering to the Indian takeover regulations. UBS Securities India Private Limited, managing the offer, noted that the MTO would proceed post-completion of the Castrol transaction, with details available on the Securities and Exchange Board of India website.

About CPP Investments

CPP Investments™ manages the Canada Pension Plan Fund, catering to over 22 million contributors and beneficiaries, through a diversified global portfolio that includes public equities, private equities, real estate, and infrastructure. Operating independently from government influence, CPP Investments is headquartered in Toronto, with offices worldwide, including cities like Hong Kong, London, and New York. By September 30, 2025, the Fund's value was C$777.5 billion. More information can be found at www.cppinvestments.com or by following them on LinkedIn, Instagram, or on X @CPPInvestments.

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