Nuclear energy company NuScale Power has signed a definitive merger agreement with Spring Valley Acquisition to create a new energy company.
The combined business entity will be named NuScale Power Corporation and have an enterprise value of almost $1.9bn.
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By GlobalDataIt will be listed under the ticker symbol SMR once the merger deal is completed.
The combined company will aim to support the global energy transition by offering safe, scalable and reliable carbon-free nuclear power.
NuScale president and CEO John Hopkins said: “Spring Valley will be a highly complementary strategic partner for NuScale as we enter this next phase of growth, with leadership that brings deep expertise in sustainable energy and a strong operating and investment record in the energy sector, including in nuclear power.”
Owned by US-based engineering and construction firm Fluor, NuScale offers advanced nuclear power via the NuScale Power Module (NPM), which can generate 77 megawatts electric (MWe) of electricity.
The deal is expected to provide NuScale with $413m in gross proceeds.
This includes a private investment in public equity of around $181m from strategic investors Samsung C&T Corporation, DS Private Equity and Segra Capital Management, as well as Spring Valley’s sponsor Pearl Energy.
NuScale will use the proceeds to commercialise its NPM solution and said it does not expect any additional capital requirements between the deal’s closing and achieving positive free cash flow.
The deal is expected to close in the first half of next year subject to customary closing conditions, including approval from Spring Valley shareholders.
Following the transaction, Fluor will own around 60% of the combined company and will retain its equity in NuScale, along with other shareholders.
In September, NuScale Power signed a memorandum of understanding with Getka Group and Unimot to explore opportunities to implement its small modular reactor technology at coal-fired power plants in Poland.
