Shares of Spring Valley Acquisition Corp. III (NASDAQ:SVAC) surged by 8% on Thursday in response to news detailing a definitive business combination with General Fusion, a company focused solely on fusion energy development. This transaction is designed to position General Fusion as the pioneering publicly traded pure-play fusion energy enterprise.
The merger agreement sets the valuation of the unions enterprise at approximately $1 billion. Financial backing includes $105 million derived from an oversubscribed private investment in public equity (PIPE), complemented by $230 million from Spring Valley’s trust capital, provided that no redemptions occur. The closing of this transaction is anticipated during the middle of 2026, with General Fusion expected to be listed on the Nasdaq stock exchange under the ticker symbol "GFUZ."
Over more than twenty years, General Fusion has developed a unique Magnetized Target Fusion (MTF) technology platform. This achievement places it among only four private entities globally that have attained and disseminated significant fusion results validated through peer-reviewed scientific channels. The company holds a portfolio encompassing 210 patents, including those granted and pending.
Funds generated through this transaction will be allocated toward the continued development of the Lawson Machine 26 (LM26), a demonstrative fusion device scaled to operate at 50% the diameter of a commercial-scale reactor. The LM26 employs mechanical plasma compression utilizing a lithium liner technology and aims to achieve essential technical fusion milestones.
Greg Twinney, Chief Executive Officer of General Fusion, noted, "We are entering the fusion era, a culmination of decades committed to innovation and collaboration, making us among the select few fusion companies globally to have delivered impactful fusion results advancing toward commercial feasibility."
Prior to this announced business combination, General Fusion successfully raised upwards of $400 million through institutional investors, venture capital commitments, and government funding grants. The company’s technology endeavors to demonstrate a pathway to fusion energy without dependence on superconducting magnets or high-power lasers, which may lower production costs for energy generation.
The International Energy Agency projects a substantial 40% to 50% increase in electricity demand by 2035, driven by expanding usage of household appliances, electric vehicles, data centers, and manufacturing sectors.