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Chevron Closes Acquisition of Biodiesel Producer Renewable Energy Group.

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MANews-(C)2009-2022

US-based oil and gas major Chevron Corp. (NYSE: CVX) has closed the acquisition of the outstanding shares of Iowa, US-based biofuel producer Renewable Energy Group, Inc. (NASDAQ: REGI) in an all-cash transaction valued at USD 3.15bn, or USD 61.50 per share, the company said.

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

The transaction is expected to accelerate progress toward Chevron's goal to grow renewable fuels production capacity to 100,000 barrels per day by 2030 and brings additional feedstock supplies and pre-treatment facilities.

After closing of the acquisition, Chevron's renewable fuels business, Renewable Fuels - REG, will be headquartered in Ames, Iowa.

In addition, CJ Warner is expected to join Chevron's board of directors.

The transaction is expected to be accretive to Chevron earnings in the first year after closing and accretive to free cash flow after start-up of REG's Geismar expansion.

The acquisition consideration...

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