Shares of Castrol India Ltd (NSE: CASTROLIND) surged 4.35% to ₹232.00 in early trading on March 6, 2025, following reports that Saudi Aramco is in the early stages of considering a bid for BP’s Castrol lubricants business. The stock saw an intraday range of ₹232.00, with a market capitalization of ₹229.48 billion.
Saudi Aramco’s Interest in Castrol
According to Bloomberg, Saudi Aramco (2222.SE) is evaluating a potential bid for BP’s (BP.L) lubricants unit Castrol, which could be valued at around $6 billion to $8 billion, according to Panmure Liberum analyst Ashley Kelty.
BP has been exploring various strategic options for Castrol, including a potential divestment, as part of its plan to offload $20 billion worth of assets by 2027. The company is shifting its focus away from renewables and back to oil and gas production to strengthen its earnings, following pressure from investors, including Elliott Investment Management, which recently acquired a 5% stake in BP.
Impact on Castrol India
While Aramco has not made a final decision on whether to proceed with the bid, investor sentiment in Castrol India has surged. A successful acquisition could potentially reshape the global lubricants market, bringing Castrol under Aramco’s control and possibly integrating it with Valvoline lubricants, which Aramco acquired for $2.65 billion in 2023.
BP and Aramco’s Response
Both BP and Aramco have declined to comment on the reports. Meanwhile, BP’s shares fell 0.1% following the news, reflecting uncertainty over its broader restructuring strategy.
Stock Performance Summary
- Current Price: ₹232.00 (+4.35%)
- Previous Close: ₹222.33
- Year Range: ₹162.60 – ₹284.40
- Market Cap: ₹229.48 billion
- P/E Ratio: 24.75
- Dividend Yield: 3.66%
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