Renewable Energy jumps after report of Chevron close to $3B acquisition
By Sourced Externally
February 27, 2022
Renewable Energy Group Inc. (NASDAQ:REGI) soared 35% in after hours trading after a report that Chevron (NYSE:CVX) is in advanced discussions to acquire the biodiesel maker for about $3B.
Chevron (CVX) is talking about paying $61.50/share for Renewable Energy, according to a Bloomberg report. No final agreement has been reached and terms could change.
The news comes after Bloomberg reported on Wednesday that the Renewable Energy (REGI) wasexploring options, including a potential sale, after receiving takeover interest. The potential deal represents almost a 90% premium to REGI’s share price on Tuesday, before the news about a possible takeover.
The company turns feedstock into fuel at locations in the U.S. and Germany, but its biodiesel margins have been hurt by higher soybean costs, Bloomberg said.