Renewable Energy Group Surged 19% Premarket On Takeover Interest
Tiger Newspress2022-02-23
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.
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