Chevron Corp. to buy biodiesel producer Renewable Energy Group Inc. The acquisition value reached US$ 3.15 billion.
The acquisition plan from the oil company is carried out to increase its clean energy business.
Chevron will pay US$ 61.5 for each share of Renewable Energy Group. This amount represents a premium of more than 40% of the last closing price of Renewable Energy.
Major oil companies are facing increasing government and investor pressure to join the fight against climate change, given their huge contribution to global emissions.
Chevron has set a target to reduce operational emissions to net zero by 2050 and in September pledged to invest $10 billion to reduce its carbon footprint by 2028, with about $3 billion allocated to renewable fuels.
Ames, based in Iowa, is a producer and supplier of cleaner fuels such as biodiesel and renewable diesel.
The deal is expected to accelerate progress toward Chevron's goal of growing renewable fuel production capacity to 100,000 barrels per day by 2030 and bring in additional feedstock supplies and pre-treatment facilities, the company said in a statement.