Latest news with #HelgeLund
Yahoo
08-07-2025
- Business
- Yahoo
BP's $8 Billion Castrol Sale Draws Bid From Firm Tied to Chairman
BP plc's BP planned sale of its Castrol lubricants business, valued at around $8 billion, is drawing interest from a range of high-profile bidders, including private equity giant Clayton Dubilier & Rice (CD&R), according to a report from Sky News. The bid by CD&R is particularly notable because BP's current chairman, Helge Lund, serves as an operating advisor to the firm. While insiders told Sky News that Lund has no involvement in CD&R's interest in Castrol, the connection adds an unusual dimension to the unfolding transaction. Lund is set to step down as its chairman within the next year and the company is actively seeking a successor. Notably, Sky News recently reported that both Sam Laidlaw (former Centrica CEO) and Ken MacKenzie (ex-BHP chair) were considered for the role but have withdrawn from the selection process. The auction for Castrol began earlier this year as BP continues to navigate a challenging strategic landscape. Other reported bidders for the lubricants unit include Apollo Global Management, Lone Star Funds and India's Reliance Industries, per Bloomberg News. These suitors reflect a mix of global strategic and financial players vying for a stake in one of the oil major's longest-standing divisions. Castrol, known worldwide for its motor oils and industrial lubricants, has long been a profitable yet non-core asset for BP. The decision to divest comes as the company faces mounting pressure from activist investor Elliott Management, which is calling for cost cuts and improved returns. These internal demands, coupled with market speculation, have intensified scrutiny on BP's direction. Just last week, London-listed rival Shell publicly denied a Wall Street Journal report claiming early-stage acquisition talks with BP. Although Shell dismissed the rumor, the episode reinforced BP's current vulnerability and its perception as a potential takeover target. CD&R's interest in Castrol aligns with its growing footprint in the United Kingdom. The firm already owns the Morrisons supermarket chain and Motor Fuel Group, a major fuel retailer. If successful, a Castrol acquisition would mark a significant expansion of its energy-adjacent portfolio. A spokesperson for CD&R declined to comment and BP has not yet responded publicly regarding the ongoing auction process. BP currently carries a Zack Rank #3 (Hold). Investors interested in the energy sector may look at a few better-ranked stocks like EQT Corporation EQT, W&T Offshore, Inc. WTI and Oceaneering International, Inc. OII. EQT Corporation, W&T Offshore and Oceaneering International carry a Zacks Rank #2 (Buy) each. You can see the complete list of today's Zacks #1 Rank stocks here. As the largest natural gas producer in the United States, EQT Corp is well-positioned to capitalize on the growing demand for clean energy. With numerous premium natural gas drilling locations in the core Appalachian Basin, the company's production outlook is solid. The firm aims for net-zero Scope 1 and 2 emissions from operations by 2025, underscoring its commitment to sustainability. The Zacks Consensus Estimate for EQT's 2025 EPS is pegged at $3.56. The company has a Growth Score of B. W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company's acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B. Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability. The Zacks Consensus Estimate for OII's 2025 EPS is pegged at $1.79. The company has a Value Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP) : Free Stock Analysis Report EQT Corporation (EQT) : Free Stock Analysis Report W&T Offshore, Inc. (WTI) : Free Stock Analysis Report Oceaneering International, Inc. (OII) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Bloomberg
08-07-2025
- Business
- Bloomberg
Chairing BP Is the Thankless Job No One Wants
It should be one of the most coveted jobs in the City of London: chairing the board of directors of oil company BP Plc. Finding a candidate, though, is proving tricky; the list of people who aren't interested keeps growing. This lack of interest reflects how challenging the gig is. BP is looking for a new chair after Helge Lund, the current holder, announced in April his intention to step down 'most likely during 2026.' Two weeks later, shareholders made clear that the sooner he departs, the better, with more than 24% voting against him — the biggest protest vote against a FTSE 100 chair in five years. An honest description of the role should read something like this: 'Leading the board, the successful candidate must end years of underperformance; our share price is down nearly 12% over the last decade compared with double-digit gains for our rivals. We're looking to improve our talent management after a string of questionable executive appointments. The chair will have to navigate a civil war among our shareholders: For some, BP lost its way by going green, while for others, we're not green enough. You should be comfortable overseeing debt — we have a mountain of it — and with improving safety, as our track record is patchy. We anticipate the chair will preside over a meaningful reduction in the workforce.'
Yahoo
01-07-2025
- Business
- Yahoo
CD&R joins race for BP's $8 billion Castrol unit, Sky News reports
-- Private equity firm Clayton Dubilier & Rice has entered the competition to acquire Castrol, BP (NYSE:BP)'s lubricant business valued at approximately $8 billion, according to Sky News, citing sources familiar with the matter. The firm joins several other bidders in the auction for the BP unit, including Apollo Global Management (NYSE:APO), Lone Star Funds, and India's Reliance Industries (NSE:RELI), whose involvement Bloomberg News previously reported. CD&R's bid adds an interesting dimension to the sale process due to its connection with BP's leadership. Helge Lund, the current chairman of BP's board who is scheduled to step down within the next 12 months, serves as an operating advisor to CD&R. Sources close to the matter have indicated to Sky News that Lund is not participating in CD&R's offer for the Castrol division. The Castrol divestiture is part of BP's broader strategy to streamline its portfolio and unlock capital amid growing pressure from activist investor Elliott Investment Management. Elliott's involvement comes at a pivotal moment, as BP has reversed parts of its earlier shift toward renewables and renewed its focus on oil and gas. Representatives from BP and CD&R have yet to respond to request for comment. Related articles CD&R joins race for BP's $8 billion Castrol unit, Sky News reports Centene stock tumbles after withdrawal of 2025 guidance JPMorgan Chase stock rises after $50 billion buyback, dividend hike
Yahoo
01-07-2025
- Business
- Yahoo
Motor Fuel Group-owner among suitors for BP's $8bn Castrol unit
The private equity firm which employs BP's chairman as an advisor is among the bidders exploring a takeover of Castrol, the oil giant's lubricant arm which has been put up for sale for about $8bn (£5.8bn). Sky News has learnt that Clayton Dubilier & Rice (CD&R) has joined the ranks of strategic and financial bidders which are part of an auction launched by BP earlier this year. CD&R's involvement in the process is notable because Helge Lund, who is stepping down as BP chairman in the next 12 months, is an operating advisor to the buyout firm. Money blog: M&S gives update after hack Mr Lund has no involvement in CD&R's work on an offer for Castrol, according to insiders. The buyout firm is one of the world's largest, and owns assets in the UK including Morrisons, the supermarket chain, and Motor Fuel Group. Bloomberg News has reported that Apollo Global Management, Lone Star Funds and India's Reliance Industries are bidders for the lubricants business. The auction of Castrol is progressing at a turbulent time for BP, which is under siege from Elliott Management, the activist investor, amid demands for the company to slash costs and boost profitability. Last week, London-listed oil rival Shell denied a Wall Street Journal report that it was in early-stage talks to buy BP, saying it had not been actively considering an offer. While erroneous, the story underlined the fact that BP is regarded as a plausible takeover target because of its travails. Sky News revealed recently that former Centrica chief executive Sam Laidlaw and Ken MacKenzie, the former chair of mining giant BHP, were among those approached to replace Mr Lund at BP. Both have now withdrawn from the process. A spokesman for CD&R declined to comment, while BP has been contacted for comment.
Sky News
01-07-2025
- Business
- Sky News
Motor Fuel Group-owner among suitors for BP's $8bn Castrol unit
The private equity firm which employs BP's chairman as an advisor is among the bidders exploring a takeover of Castrol, the oil giant's lubricant arm which has been put up for sale for about $8bn (£5.8bn). Sky News has learnt that Clayton Dubilier & Rice (CD&R) has joined the ranks of strategic and financial bidders which are part of an auction launched by BP earlier this year. CD&R's involvement in the process is notable because Helge Lund, who is stepping down as BP chairman in the next 12 months, is an operating advisor to the buyout firm. Mr Lund has no involvement in CD&R's work on an offer for Castrol, according to insiders. The buyout firm is one of the world's largest, and owns assets in the UK including Morrisons, the supermarket chain, and Motor Fuel Group. The auction of Castrol is progressing at a turbulent time for BP, which is under siege from Elliott Management, the activist investor, amid demands for the company to slash costs and boost profitability. Last week, London-listed oil rival Shell denied a Wall Street Journal report that it was in early-stage talks to buy BP, saying it had not been actively considering an offer. While erroneous, the story underlined the fact that BP is regarded as a plausible takeover target because of its travails. Sky News revealed recently that former Centrica chief executive Sam Laidlaw and Ken MacKenzie, the former chair of mining giant BHP, were among those approached to replace Mr Lund at BP. Both have now withdrawn from the process.
