BY Fraser Tennant
In a combination that will take it public, Fluor Corporation’s nuclear energy unit NuScale Power is to merge with special purpose acquisition company (SPAC) Spring Valley Acquisition Corp in a transaction valued at $1.9bn.
Upon completion, Fluor projects will own approximately 60 percent of the combined company, based on the private investment in public equity (PIPE) investment commitments received and the current equity and in-the-money equity equivalents of NuScale Power and Spring Valley.
Having invested more than $600m in NuScale Power since 2011 to help bring its technology to market, Fluor expects that the merger will bolster and accelerate the path to commercialisation and deployment of NuScale Power’s unique small modular nuclear reactor technology.
The combined company will become the first and only publicly-traded company focused on development of advanced small modular reactor (SMR) technology. Currently NuScale Power is the developer of the only SMR technology that has received standard design approval from the US Nuclear Regulatory Commission (NRC).
“The merger is further evidence that cost-shared government funding to build first-of-a kind commercial scale technology can attract private investment and yield results,” said Alan Boeckmann, executive chairman of Fluor. “Fluor will continue to serve as an important partner by providing NuScale Power and its clients with world-class expertise in engineering services, project management and supply chain support.”
Headquartered in Irving, Texas, Fluor has been providing engineering, procurement and construction services for more than 100 years. Its 44,000 employees provide professional and technical solutions that deliver safe, well-executed, capital-efficient projects to clients around the world.
The proposed transaction is anticipated to close in the first half of 2022 subject to customary closing conditions.
Mr Boeckmann concluded: “This is the next step in Fluor’s plan, first outlined 10 years ago, to work closely with NuScale Power, Congress and the Department of Energy to commercialise this unique carbon-free energy technology. ”
News: Fluor's nuclear energy unit NuScale to go public via $1.9 billion SPAC deal