The second largest oil company in the United States is buying an Iowa-based renewable fuels company in an all-cash transaction valued at $3.15 billion.
Chevron announced Monday it?s purchasing Renewable Energy Group (REG) out of Ames at $61.50 per share. A press release from Chevron says the acquisition combines REG?s growing renewable fuels production and leading feedstock capabilities with Chevron?s large manufacturing, distribution and commercial marketing position.
Iowa Senator Chuck Grassley was asked about the deal during his weekly press call with farm reporters Tuesday morning.
?There?s something that really stands out in my mind without knowing a lot of things right now. They better not take jobs away from Iowa,? said Grassley. ?I think that?s what I got to be fighting for. I don?t want Chevron, who I consider Big Oil, coming in buying up REG and then moving a whole bunch of jobs out of Iowa.?
Chevron officials say the transaction is expected to accelerate progress toward the company?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.
Grassley says he has a meeting scheduled later this week with the CEO of Renewable Energy Group.
?Iowa is the heart of biofuels production and hopefully Big Oil knows that as well,? said Grassley. ?I?ve never considered myself an enemy of Big Oil except when they are fighting our ethanol and biofuels industry. We just want to make sure that they keep those jobs in Iowa. I?ll know more later on this week when I am briefed.?
The transaction has been approved by the Boards of Directors of both companies and is expected to close in the second half of 2022. The acquisition is subject to REG shareholder approval. It is also subject to regulatory approvals and other customary closing conditions.
