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Aiming at a more sustainable future and at new businesses in the field of energy transition with biofuels, the company Chevron finalized its acquisition of the company REG and intends to invest in the production of biodiesel over the next few years.
On Monday (13/06), the multinational energy company Chevron finally finalized the acquisition of Renewable Energy Group (REG), a biodiesel producer based in Iowa, United States. This is a big step for the energy company in the field of biofuels, considering the current focus of the international market in the quest for energy transition and in the production of new, even more sustainable alternatives for fueling vehicles around the world.
Acquisition of REG by Chevron is finalized after months of negotiations and the energy company will be able to focus on the production of biofuels with a focus on biodiesel
The international market is increasingly focused on the initiative to decarbonize the transport sector and, for this, there is a high demand for biofuels worldwide, since they guarantee neutralizing the emission of polluting gases, such as CO2.
In this way, several companies are turning their efforts to investing in the segment and seeking new alternatives for the energy transition of fuels in the international market, as in the case of the American energy company Chevron.
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This is because the US-based company took another step towards a more sustainable future and finalized the acquisition of the biofuel company REG, focused on producing biodiesel for the international market.
The finalization of the deal took place after the approval given by the shareholders of REG during this last Monday, after a long wait by the energy company. The transaction was announced in March, when Chevron said it would buy REG's outstanding shares for $3,15 billion in cash, but it had not yet been finalized between the companies.
Additionally, at that time, Chevron said REG's experience in raw material sourcing and market access are two factors that make the acquisition an attractive way to boost the company's renewable fuels business.
Thus, in mid-May, REG's shareholders approved the agreement to be acquired by Chevron, with more than 80% of the shares outstanding and voting in favor of the merger, but only now, after more than a month of waiting, has the completion of the acquisition could happen.
Purchase of REG is part of the company's plan to expand production of biofuels with a focus on the biodiesel market
Chevron's primary objective in completing the acquisition of US company REG is to drive progress toward Chevron's goal of increase capacity production of so-called biofuels to 100 barrels per day by 2030.
In this way, the company will use REG's portfolio to boost its production, with a more attentive look at the biodiesel market, which has been growing more and more among countries around the world.
And, after the finalization of the agreements for the acquisition of the company, the executive vice-president of downstream and chemical products of the oil company, Mark Nelson, celebrated the achievement and stated: “We bring together companies with complementary resources, assets and relationships with clients to make Chevron is one of the leading renewable fuel companies in the US. Chevron now offers our customers an expanded suite of cost-effective, low-carbon solutions that utilize current fleets and infrastructure.”
Now, Chevron moves forward in search of even greater expansion in the biofuels market and will be able to use REG's relevance in the biodiesel business to leverage its growth project in the production of resources.
