Renewable Energy Group surged 19% pre-market following a Bloomberg report that the biodiesel maker is exploring options including a potential sale after receiving takeover interest.
Renewable Energy has held recent takeover talks with large oil and gas companies, and is working with financial advisors, according to the report.
The company turns feedstock into fuel at locations in the U.S. and Germany, but its biodiesel margins have been hurt by higher soybean costs, Bloomberg says.
"Biodiesel is a stop-gap arrangement during the transition from fossil fuel to greener energy sources in transport, [whose] demand will not be permanent," Rohit Acharya writes in a bearish analysis posted on Seeking Alpha.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments