Renewable Energy Group Inc (NASDAQ: REGI) is trading significantly higher Monday after Chevron Corp (NYSE: NYSE:CVX) announced an agreement to acquire the company.
Under terms of the deal, Chevron is set to acquire the outstanding shares of Renewable Energy Group in an all-cash transaction valued at $3.15 billion, or $61.50 per share.
"REG was a founder of the renewable fuels industry and has been a leading innovator ever since," said Mike Wirth, chairman and CEO of Chevron. "Together, we can grow more quickly and efficiently than either could on its own."
The transaction, which is expected to close in the second half of 2022, should accelerate progress toward Chevron’s goal to grow renewable fuels production capacity to 100,000 barrels per day by 2030.
Renewable Energy Group is a producer and refiner of biofuels in the oil and gas industry.
See Also: 27 Stocks Moving in Monday's Pre-Market Session
REGI Price Action: Renewable Energy Group has traded as low as $32.54 and as high as $96.23 over a 52-week period.
Following the acquisition announcement, the stock was up 38.8% at $60.80 at time of publication.
Photo: jp26jp from Pixabay.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read at Benzinga