Chevron Acquires Renewable Energy Group – News

CHEVRON is buying biorefinery owner Renewable Energy Group (REG) in a $3.15 billion deal.

REG is an international producer of sustainable fuels and operates 11 biorefineries in Europe and the United States. Chevron will now acquire the outstanding shares of REG in an all-cash transaction. The goal is to combine REG’s raw materials capabilities and sustainable fuels production with Chevron’s manufacturing distribution and trade marketing position. Chevron expects the transaction to help accelerate progress toward its goal of 100,000 bpd renewable fuels production capacity by 2030.

Mike Wirth, CEO of Chevron, said, “REG was one of the founders of the renewable fuels industry and has been a leading innovator ever since. Together, we can grow faster and more efficiently than either could on their own. »

CJ Warner, CEO of REG, said: “This transaction delivers superior 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 that our customers and the world need. The hard work and dedication of our employees has built a fantastic renewable fuels business and made this transaction possible. We look forward to joining the Chevron team.

Warner is expected to join Chevron’s board of directors after the transaction closes. The transaction is expected to be finalized in the second half of 2022.