With the energy transition, large multinationals in the oil sector are increasingly engaging in renewable energy projects with the aim of limiting their carbon footprint.
The company Renewable Energy Group (REG) is the subject of a definitive purchase contract signed by the American giant Chevron, which made the announcement.
It should be noted that the American company specializes in the production of biodiesel used as an alternative fuel for conventional diesel engines.
The agreement provides, among other things, that Chevron will acquire all of the outstanding shares of REG for $3,15 billion at $61,5 per share.
This acquisition will help consolidate the growth of the renewable fuels value chain according to details provided by the oil giant.
This will be achieved by pooling REG's expertise in raw materials with Chevron's in manufacturing, distribution and sales policy. A strategy that is in line with Chevron's goal of increasing its biofuel production to 100 barrels per day by 000.
Chevron CEO Mike Wirth said the deal will close in the second half of 2022. “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 alone.”
"The transaction provides superior cash value to its shareholders and will secure additional resources to improve the delivery of low-carbon fuels to customers," said Cynthia Warner, CEO of REG.
