Castrol Share Price Surged 5% After Saudi Aramco Begins Eyeing BP’s Lubricant Business

Castrol India share price soared by over 5% this morning following news reports that the world’s largest energy company, Saudi Aramco is planning to acquire BP Plc’s lubricant business to expand its reach in oil-consuming markets. 

On the Bombay Stock Exchange, Castrol India’s shares rallied by nearly 6% to ₹235.50. The business has a market capitalisation of US$2.5 billion and presents exciting growth opportunities for Saudi Aramco. 

BP Initiates Strategic Review of Castrol Lubricants Business Amid Corporate Restructuring

BP Plc has initiated a strategic review of its Castrol lubricants business as a part of its bigger corporate restructuring plans. Its business is currently valued at around US$ 10 billion. Industry reports suggest that Saudi Aramco plans to integrate the former’s assets with its existing Valvoline lubricants unit, which was acquired for nearly US$2.65 billion in 2023.

Castrol India Share Price Trend

On the Bombay Stock Exchange, Castrol India share price recorded an 8% monthly growth rate and a 12% rise on a year-to-date (YTD) basis. Over the past 3 years, the company has maintained an ROE (return on equity) of 45.40% and has largely remained debt-free. It has also reported an ROCE (return on capital employed)  of 59.67% over recent years. 

After witnessing a decline of over 40% during the past 22 weeks, Castrol India share price has now signaled a strong reversal. This has increased buying interest among investors, who are opting for a log position amidst a bullish outlook. Castrol India’s stock prices have risen by 9% year-on-year, and have garnered significant appeal among investors. 

Saudi Aramco Focuses on Expanding in India, China, and Southeast Asia to Boost Profitability

In 2024, Bloomberg reported that the Downstream President at Saudi Aramco, Mohammed Al Qahtani cited that India, China, and Southeast Asia are big markets for Saudi Aramco’s business. The company is focusng on acquiring more petrochemical companies to boost profitability, thereby favouring Castrol’s share prices indirectly. 

Conclusion

Castrol India’s share price has surged following reports of Saudi Aramco’s potential acquisition of BP’s lubricants business. With strong financials, growth potential, and investor optimism, Castrol India is poised for a promising future. Saudi Aramco’s strategic focus on expanding in key markets further enhances its appeal.

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