Chevron said it completed its previously announced acquisition of Renewable Energy Group (REG) following approval by REG stockholders.
Further, Cynthia “CJ” Warner, formerly president and CEO of REG, was appointed to Chevron’s Board of Directors, effective June 13.
Chevron announced in late February that it would buy the biofuels company for $3.15 billion.
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Chevron said that through the acquisition it aims to grow its renewable fuels production capacity to 100,000 barrels per day by 2030. Renewable Energy Group operates 11 biorefineries in the U.S. and Europe and produced 519 million gallons of biofuels in 2020.
Chevron CEO Mike Wirth said the acquisition allows the company to "grow more quickly and efficiently" than it could on its own.
The $3.15 billion all-cash acquisition represented a premium of 57% of the Renewable Energy Group's average stock price.
Renewable Energy Group will become Renewable Fuels - REG under the Chevron umbrella, according to a news release. The company will be headquartered in Ames, Iowa.
