BP has struck a $6bn (£4.4bn) deal to sell a majority stake in its motor oil division Castrol to a US investment firm. The oil giant sold a 65% stake in Castrol, which makes lubricants for cars, motorcycles and industrial vehicles, to New York-based Stonepeak.
The deal valued Castrol at $10.1bn (£7.5bn), with BP receiving $6bn in cash, which it will use to pay down debts and allow it to focus on its core business. BP will hold onto a 35% stake in Castrol, which it first took control of in 2000.
The London-based oil major said the sale is a "milestone" in its plans to overhaul its business and strip out costs. BP in February announced plans to sell off $20bn (£15bn) worth of assets in a bid to focus on its core crude oil and gas business and strengthen its balance sheet.
Following today's deal and previous announcements, the company says its over half way to meeting that target.
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