Chevron Announced Plans to Acquire Renewable Energy Group in All-Cash Deal
Feb 28, 2022 By MarketDepth
Chevron (NYSE: CVX) announced plans to acquire biodiesel maker Renewable Energy Group (NASDAQ: REGI) (“REG”) in an all-cash deal worth USD3.15 Billion, as it strives to boost its clean-energy business. The company is set to pay USD61.5 per share of Renewable Energy, a premium of more than 40% to the company’s last closing price.
“REG was a founder of the renewable fuels industry and has been a leading innovator ever since. Together, we can grow more quickly and efficiently than either could on its own.”Chevron Chairman and CEO Mike Wirth
The multinational energy corporation anticipates the deal will speed up its progress in boosting its renewable fuels production capacity to 100K barrels per day by 2030, as well as add additional feedstock supplies and pre-treatment facilities.
“This transaction delivers premium cash value to shareholders and will give us additional resources as we aim to accelerate growth and strengthen our collective ability to deliver the sustainable fuels our customers and the world need. Our employees’ hard work and dedication have built a fantastic renewable fuels company and made this transaction possible. We look forward to joining Chevron’s team.”CJ Warner, REG president & CEO
Following the deal closing, Chevron’s renewable fuels division will be headquartered in Ames, Iowa.