Chevron acquires Renewable Energy Group for $3.15 bln

Chevron Corporation announced on Monday the acquisition of Renewable Energy Group, valued at US $3.15 billion, as the company looks to invest further into clean energy.

Chevron said it will pay US $61.50 per share for the acquisition and that the deal will “accelerate progress” toward Chevron’s goal to grow renewable fuels production capacity to 100,000 barrels per day by 2030.

“REG was a founder of the renewable fuels industry and has been a leading innovator ever since,” said Chevron Chairman and CEO Mike Wirth. “Together, we can grow more quickly and efficiently than either could on its own,” he said.

Cynthia (CJ) Warner, REG CEO, is expected to join Chevron’s Board of Directors.

“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,” Warner said.

The companies said that the acquisition consideration is 100 percent cash. With the total enterprise value of $2.75 billion which includes a net cash position around $400 million greater than debt.

Goldman Sachs & Co. LLC has been acting as financial advisor to Chevron, said the company.