Chevron nears $3 bln deal to buy Renewable Energy Group – Bloomberg News


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.