Renewable Energy (NASDAQ:REGI) is rising higher on Monday following news that Chevron (NYSE:CVX) is going to acquire the company.
Let’s dive into everything investors in REGI stock need to know about that deal below!
- First off, note that the total value of the deal between the two companies is $3.15 billion.
- That has Chevron valuing REGI stock at $61.50 per share.
- This represents a roughly 57% premium to the stock’s 30-day average as of Friday.
- It’s also worth noting that Chevron is using cash to fund the deal.
- Chevron notes that it expects the acquisition to be accretive to its earnings report in the first year after closing.
- It’s also expecting it to be accretive to cash flow after the start of Renewable Energy’s Geismar expansion.
- Both companies’ Boards of Directors have given their support to the acquisition deal.
- Now it just needs approval from shareholders in REGI stock, as well as regulators.
- So long as there are no issues, the two companies are looking for the deal to close during the second half of 2022.
CJ Warner, president and CEO of Renewable Energy, said the following about the deal boosting REGI stock higher today.
‘This transaction delivers premium cash value to shareholders and will give us additional resources as we aim to accelerate growth and strengthen our collective ability to deliver the sustainable fuels our customers and the world need.”
Heavy trading follows REGI stock today with this acquisition news. As a result, some 9 million shares of the stock are on the move as of this writing. That’s quite the jump from its daily average trading volume of almost 797,000 shares.
REGI stock is up 40.3% as of Monday afternoon.
Investors searching for more stock market news are in luck!
We’ve got all the most recent stock market coverage that traders need for Monday! Among that is what’s happening with Shell (NYSE:SHEL), stocks to consider buying during war, as well as Ebay (NASDAQ:EBAY) promising crypto payments soon. You can find out more on these matters at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
