CHEVRON is buying biorefinery owner Renewable Energy Group (REG) in a US$3.15bn deal.
REG is an international producer of sustainable fuels and operates 11 biorefineries across Europe and the US. Chevron will now acquire outstanding shares in REG in an all-cash transaction. The aim is to combine REG’s feedstock capabilities and sustainable fuels production with Chevron’s manufacturing distribution and commercial marketing position. Chevron expects that the transaction will help to accelerate progress on its goal of a renewable fuels production capacity of 100,000 bbl/d by 2030.
Mike Wirth, CEO of Chevron, said: “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.”
CJ Warner, CEO of REG, said: “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.”
Warner is expected to join Chevron’s board of directors following the completion of the transaction. The transaction is expected to be finalised in the second half of 2022.
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