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The Canadian Press
The Canada Pension Plan Investment Board says it has acquired a minority stake in lubricants company Castrol alongside private investment firm Stonepeak.
Stonepeak is acquiring a majority controlling stake in Castrol from BP plc in a deal that values Castrol at an enterprise value of about US$10.1 billion.
The pension fund says it will invest up to US$1.05 billion in the deal.
CPP Investments managing director and head of sustainable energies Bill Rogers says the investment aligns with its strategy of backing businesses that are essential to the energy system.
Castrol is known for its lubricants, such as engine oils, industrial fluids and greases for automobiles and airlines.
The transaction is expected to close by the end of 2026.