Chevron Inks Agreement to Acquire Renewable Energy Group for $3.15B

SAN RAMON, Calif. & AMES, Iowa — Chevron Corp. will acquire the outstanding shares of Renewable Energy Group Inc. (REG) for $3.15 billion in an all-cash transaction.

The deal combines REG's growing renewable fuels production and leading feedstock capabilities with Chevron's large manufacturing, distribution and commercial marketing position.

"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."

Chevron expects the acquisition to accelerate its progress toward the company's goal of growing renewable fuels production capacity to 100,000 barrels per day by 2030. It also provides additional feedstock supplies and pre-treatment facilities.

After the transaction closes, Chevron's renewable fuels business, Renewable Fuels - REG, will be headquartered in Ames, Iowa. REG President and CEO CJ Warner 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. "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."

The deal is expected to close in the second half of 2022.

Based in San Ramon, Chevron is one of the world's leading integrated energy companies. It produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and the industry.