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By Francesca Landini

MILAN, May 27 (Reuters) - Nuclear energy company Newcleo has entered an agreement to list on the Nasdaq stock exchange through a merger with NewHold Investment Corp III NHIC.O, the firm founded by Italian physicist Stefano Buono said on Wednesday.

Newcleo is developing advanced modular lead-cooled fast reactors and nuclear fuel from reprocessed nuclear material.

It will work with its partner Oklo Inc. OKLO.N on a program launched by the U.S. Department of Energy to potentially use the country's Cold War-era plutonium as nuclear reactor fuel.

"In partnership with Newcleo, Oklo would lead the utilization of surplus plutonium, while Newcleo would bring relevant fuel-cycle experience," the company said.

In the United States, nuclear energy is seen as a promising solution to meet increasing power demand for data centres and artificial intelligence.

The merger with NewHold Investment Corp III will value the company at $2.4 billion and is expected to provide up to $429 million in gross proceeds, with the transaction expected to close in the second half of 2026, Newcleo said in a statement.

Since its founding in 2021, it has raised about $780 million from private investors including the Agnelli family's Exor Seeds venture capital fund.