Sustainable Fuels Chevron to Takeover Renewable Energy Group for 3.15-Billion-Dollars

Under an agreement signed between Chevron and Renewable Energy Group (REG), Chevron will acquire the outstanding shares of REG for 3.15-billion-dollars, thus taking over the company. The move will help Chevron to meet its goal of increasing its renewable fuels production capacity to 100,000 barrels per day by 2030.

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Chevron Headquarters

California/USA – Chevron Corporation and Renewable Energy Group have recently announced a definitive agreement under which Chevron will acquire the outstanding shares of REG in an all-cash transaction valued at 3.15 billion dollars, or 61.50 dollars per share.

The acquisition combines REG’s growing renewable fuels production and leading feedstock capabilities with Chevron’s large manufacturing, distribution and commercial marketing position.

The transaction is expected to accelerate progress toward Chevron’s 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’s renewable fuels business, Renewable Fuels - REG, will be headquartered in Ames, Iowa, USA. In addition, CJ Warner, REG president & CEO is expected to join Chevron’s Board of Directors.

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“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,” said CJ Warner.

The transaction is expected to be accretive to Chevron earnings in the first year after closing and accretive to free cash flow after start-up of REG’s Geismar expansion.

The acquisition consideration is 100 percent cash. Total enterprise value of 2.75 billion dollars includes a net cash position around 400 million dollars greater than debt.

The transaction has been approved by the Boards of Directors of both companies and is expected to close in the second half of 2022. The acquisition is subject to REG shareholder approval. It is also subject to regulatory approvals and other customary closing conditions.

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