Renewable Energy Group Shares Soar 39% after agreeing on a deal with Chevron to acquire the firm in a $3.15B, according to a press release by Chevron on Monday.

  • The acquisition integrates REG’s growing renewable fuels production and leading feedstock capabilities with Chevron’s large manufacturing, distribution, and commercial marketing position.
  • Mike Wirth, Chevron Chairman and CEO, stated that REG was a founder of the renewable fuels industry and has been a leading innovator over the years.
  • The deal is anticipated to boost progress toward Chevron’s goals to expand renewable fuels production capacity to 100,000 barrels per day by 2020 and provide extra feedstock supplies and pre-treatment facilities.
  • Upon finalization of the acquisition deal, Chevron’s renewable fuels business, Renewable Fuels-REG, will be based in Ames, Iowa. CJ Warner is also expected to join Chevron’s board of directors.

The transaction will contribute to a gradual increase in Chevron earnings in the first year after finalization and add to free cash flow after the start-up of REG’s Geismar expansion. REGI up +38.18%, Pre-market trading