Renewable Energy Group Inc. has a deal to buy a majority interest in Petrotec AG from IC Green Energy Ltd. and will make an offer for the remaining shares.

IC Green agreed to accept an offer from REG European Holdings BV to purchase IC Green's 69 percent equity ownership in Petrotec AG for $20.9 million to be paid in newly issued REG stock. The transaction is expected to be completed by the end of the year.

The REG subsidiary will also purchase IC Green's loan to Petrotec AG for $15.4 million. In the next several weeks, REG European Holdings intends to make a cash tender offer for all other Petrotec shares.

"REG's investment in Petrotec is a natural extension of our business strategy which should enable us to better capture value from international trade flows and to participate in European biofuel markets," said Daniel J. Oh, REG president and CEO.  "Petrotec's people, culture, business model and technology are similar to ours at REG. We look forward to working with the Petrotec team as REG expands its business into Europe and further delivers the key benefits of our international industry: energy security and diversity, environmental stewardship and food security."

Petrotec combines used cooking oil and other waste feedstocks to produce biodiesel at biorefineries in Emden and Oeding, Germany. Petrotec's nameplate production capacity is 55.5 million gallons.