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Chevron to buy Renewable Energy Group in $3.15 billion deal -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: Chevron Corp’s logo can be seen at Gastech. This is the largest expo in the world for the natural gas industry. It was held in Chiba on April 4, 2017. REUTERS/Toru Hanai/

(Reuters) –Chevron Corp stated Monday that it would purchase biodiesel producer Renewable Energy Group (NASDAQ) Inc in an all money deal of $3.15 billion. The oil giant is looking to grow its clean energy business.

Chevron (NYSE:) will pay $61.5 per share for Renewable Energy. This is a premium exceeding 40% from the last closing price.

Due to their significant contributions to climate change, major oil companies are under increasing investor and government pressure.

Chevron set an operational emission reduction target of net zero by 2050. In September, Chevron pledged $10 billion in order to lower its carbon footprint until 2028. About $3 billion was earmarked to renewable fuels.

Renewable Energy in Ames, Iowa is a manufacturer and supplier cleaner fuels like renewable diesel and biodiesel.

The deal is expected to accelerate progress toward Chevron’s goal to grow renewable fuels production capacity to 100,000 barrels per day by 2030 and brings additional feedstock supplies and pre-treatment facilities, the company said in a statement.

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