Renewable Energy Group, Inc. (NASDAQ: REGI) is engaged as a global producer and distributor of sustainable energy and fuel. Across the U.S. and Europe, the company operates a production, distribution and logistics network featuring 11 biorefineries. In 2020 alone, Renewable Energy Group produced 519 million gallons of sustainable fuel.
Shares of the green energy producer are jumping 40% through afternoon trading on Monday, February 28, 2022. Over the past three months, Renewable Energy Group has seen average daily volume of 792,310 shares. However, volume of 9.1 million shares or dollar volume of around $559.47 million, has already exchanged hands through afternoon trading.
The sustainable fuel company saw shares rally after announcing a definitive agreement to be acquired by Chevron Corporation (NYSE: CVX) for $61.50 per share in cash. This gives the prospective transaction a total value of $3.15 billion.
Chevron’s acquisition of Renewable Energy Group comes as the oil & gas giant looks to continue diversifying into alternative and more sustainable energy options. The acquisition will effectively combine REGI’s expanding renewable fuel production with Chevron’s massive footprint in manufacturing, distribution, and marketing.
By 2030, Chevron has set a goal to grow renewable energy capacity to 100,000 barrels per day. The acquisition of Renewable Energy Group is expected to significantly accelerate progress towards that goal.
“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,” said CJ Warner, REG president & CEO. “Our employees’ hard work and dedication have built a fantastic renewable fuels company and made this transaction possible. We look forward to joining Chevron’s team.”
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