Chevron Corp is nearing a $3 billion deal to buy biodiesel maker Renewable Energy Group Inc, Bloomberg News reported on Friday, citing people familiar with the matter.
Chevron could pay $61.50 per share in the deal, which could be announced as soon as next week if talks do not fall apart, the report said.
Renewable Energy did not immediately respond to a Reuters request for comment, while Chevron declined to comment.
Major oil companies are facing increasing governmental and investor pressure to join the fight against climate change.
Chevron has set a target to cut operational emissions to net zero by 2050 and in September pledged to invest $10 billion to reduce its carbon emissions footprint through 2028, with about $3 billion earmarked for renewable fuels.
Ames, Iowa-based Renewable Energy, whose shares were 33.7% higher in extended trading, is a producer and supplier of cleaner fuels like biodiesel and renewable diesel.
Bloomberg News had reported earlier this week that Renewable Energy was exploring options including selling itself after it had received a buyout bid.