Chevron gets EU nod for Renewable Energy Group deal

The European Commission (EC) has cleared US energy giant Chevron’s (NYSE:CVX) agreement to acquire domestic biodiesel firm Renewable Energy Group Inc (NASDAQ:REGI), or REG, in a deal valued at about USD 3.15 billion (EUR 2.93bn).

The approval was given unconditionally. The EU merger regulator has ruled that the proposed transaction is not expected raise competition concerns as the overlaps between the companies' activities are very limited and in any event do not affect the European Economic Area, a press release said on Wednesday.

Chevron agreed to buy REG for USD 61.50 per share in cash at the end of February.

REG specialises in converting renewable resources into sustainable fuels. It operates 11 biorefineries in the US and Europe. In 2020, the company produced 519 million gallons, or 1.7 million metric tons, of cleaner fuel delivering 4.2 million metric tons of carbon reduction.

(USD 1 = EUR 0.931)

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