Newcleo plans to go public in the US through a merger with special-purpose acquisition company NewHold Investment III (NHIC) in a deal valuing the nuclear power developer at about $2.4 billion, The Wall Street Journal reported Wednesday, citing the company.

The merger is expected to support the nuclear power developer's entry into the US power market and fund existing projects in Europe, the report said. The companies expect the transaction to generate more than $420 million in gross proceeds through a combination of cash held in NewHold's trust account and an anchored private investment in public equity, it added.

The deal is expected to close in the second half of the year, with the combined entity set to trade on the Nasdaq under the ticker NWCL.

Newcleo chief executive officer Stefano Buono said the funding could support the company through 2028 or 2029, even with accelerated licensing and construction activity in the US, the report said.

Newcleo and NewHold Investment III did not immediately respond to requests for comment from MT Newswires.

Shares of NewHold Investment III were up more than 7% in recent Wednesday premarket activity.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)