Chevron has acquired Renewable Energy Group (REG) in an all-cash transaction valued at $3.15 billion. The transaction, previously announced in February, has been approved by REG stockholders at $61.50 per share, according to Chevron press releases.
The transaction is part of Chevron’s goal to increase renewable fuels production capacity to 100,000 barrels per day by 2030 and brings additional feedstock supplies and pre-treatment facilities. After the acquisition, Chevron’s renewable fuels business will be headquartered in Ames, Iowa.
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“We have brought together companies with complementary capabilities, assets, and customer relationships to make Chevron one of the leading renewable fuels companies in the United States,” said Mark Nelson, executive vice president of downstream and chemicals for Chevron. “Chevron now offers our customers an expanded suite of cost-effective, lower carbon solutions that utilize today’s fleets and infrastructure.”
Cynthia “CJ” Warner, formerly president and CEO of REG, has been appointed to Chevron’s board of directors, effective today.
“CJ Warner has deep experience across both the traditional and renewable energy sectors,” Chevron Chairman and CEO Mike Wirth said. “Her perspective and guidance will be invaluable as Chevron leverages its strengths to deliver lower carbon energy to a growing world.”
