REG stockholders approve USD-3.15bn acquisition by Chevron

The Geismar biorefinery in Louisiana. Source: Renewable Energy Group Inc

May 18 (Renewables Now) - The stockholders of Renewable Energy Group Inc (NASDAQ:REGI) have given the green light to the bio-based diesel producer’s pending USD-3.15-billion (EUR 2.98bn) takeover by oil giant Chevron Corp (NYSE:CVX), it was announced on Tuesday.

The merger agreement was adopted with support from holders of over 80% of the shares outstanding and entitled to vote. Subject to receiving regulatory clearance, the transaction is seen to close in mid-year 2022.

The terms of the deal, which was announced in late February, call for Chevron to pay USD 61.50 per REG share in cash. At the time of signing, Chevron’s chairman and CEO Mike Wirth commented that the two companies can grow more quickly together than if they remain on their own.

Presently, REG operates 11 biorefineries in the US and Europe, and in 2021 produced 480 million gallons of cleaner fuel. The company is undertaking an expansion of its Geismar biorefinery in Louisiana to increase its annual production capacity by 250 million gallons to 340 million gallons. The particular facility was the country’s first renewable diesel plant and was acquired by the company in 2014.

Chevron’s objective is to grow renewable fuels production capacity to 100,000 barrels per day by 2030.

(USD 1.0 = EUR 0.947)

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