Chevron Corporation and Renewable Energy Group, Inc. (REG) announce a definitive agreement under which Chevron will acquire the outstanding shares of REG in an all-cash transaction valued at $3.15 billion, or $61.50 per share.聽The acquisition combines REG鈥檚 growing renewable fuels production and leading feedstock capabilities with Chevron鈥檚 large manufacturing, distribution and commercial marketing position.聽鈥淩EG was a founder of the renewable fuels industry and has been a leading innovator ever since,鈥� said Chevron Chairman and CEO Mike Wirth. 鈥淭ogether, we can grow more quickly and efficiently than either could on its own.鈥�
The transaction is expected to accelerate progress toward Chevron鈥檚 goal to grow renewable fuels production capacity to 100,000 barrels per day by 2030 and brings additional feedstock supplies and pre-treatment facilities. After closing of the acquisition, Chevron鈥檚 renewable fuels business, Renewable Fuels – REG, will be headquartered in Ames, Iowa. In addition, CJ Warner is expected to join Chevron鈥檚 Board of Directors.
鈥淭his 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,鈥� said CJ Warner, REG president & CEO. 鈥淥ur employees鈥� hard work and dedication have built a fantastic renewable fuels company and made this transaction possible. We look forward to joining Chevron鈥檚 team.鈥�