(Chevron) Shares of Renewable Energy Group Inc. rose more than 38% on Monday on news of a $3.15 billion acquisition by Chevron Corporation.
The all-cash transaction values Renewable Energy at $61.50 per share, about 57% premium on the stock’s closing price on February 25, on a 30-day average.
The deal is expected to accelerate Chevron’s move towards renewable fuels, with the company setting up to 100,000 bpd production capacity by 2030.
Chevron expects the transaction to be accretive to its earnings in the first year after closing.
The acquisition has been approved by the boards of both companies, setting it on course to close in the second half of the year. The consideration is 100% in cash.
REGI: NASDAQ is up +38.09%, CVX: NYSE is up +1.09%.
