(NAFB) – Chevron Corporation and Renewable Energy Group, Inc. announced Monday a definitive agreement under which Chevron will acquire the outstanding shares of Renewable Energy Group. The all-cash transaction is valued at $3.15 billion, or $61.50 per share.

Company leadership says the acquisition combines Renewable Energy Group growing renewable fuels production and leading feedstock capabilities with Chevron’s large manufacturing, distribution and commercial marketing position. Chevron Chairman and CEO Mike Wirth says, “Together, we can grow more quickly and efficiently than either could on its own.” The transaction is expected to accelerate progress toward Chevron’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.

After closing the acquisition, Chevron’s renewable fuels business, Renewable Fuels – REG, will be headquartered in Ames, Iowa. Renewable Energy Group operates 12 biorefineries and a feedstock processing facility and is the largest U.S. producer of biomass-based diesel.