It was only last month that we reported Zuber Issa had bought an undisclosed stake in historic oil brand Duckhams. Now, however, the billionaire businessman behind EG On The Move is said to be eyeing up Castrol.
The British brand, which has a longstanding association with motorsport, is currently owned by BP, but The Sunday Times reports that the oil giant has put Castrol up for sale, and a potential group of investors headed by Zuber could be formed to lead talks to make the purchase. The oil brand is said to be worth anywhere between $6bn and $12bn (£4.45-£8.9bn).
The paper speculates that Issa could either go into battle with rival private-equity firms as he seeks to acquire Castrol, or join forces with investors and work as an “operating partner” in any potential takeover.
Whatever tactics are deployed, the move into engine oils is arguably indicative of Issa’s belief that, despite current government policy on electric cars, there’s a fair amount of life left in the internal combustion engine yet.
Castrol originated in London in 1899, with its name derived from the castor oil that was used in some early oil formulations – though the company didn’t formally adopt the Castrol name until 1960. It was acquired by BP in 2000.
