Aug 30 (Reuters) - Rolls-Royce Holdings (RR.L) , opens new tab is exploring funding options for its small nuclear reactor unit, including the possibility of an initial public offering, the Financial Times reported on Saturday, citing people familiar with the situation.

The talks with investment houses and banks are focused on future funding needs and remain at an early stage, with the company's board in no rush to decide, the report added.

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In June, the Rolls-Royce SMR unit was selected to build Britain's first Small Modular Reactors as part of its plan to speed up the decarbonisation of the power network from the mid-2030s.

The unit, majority-owned by the British engineering firm, plans to build three reactors.

The British government pledged 2.5 billion pounds ($3.4 billion) for the SMR programme over the next four years, aiming to launch one of Europe's first small-scale nuclear industries.

Countries including the United States, Canada, Romania and the Czech Republic are also pursuing SMRs, which could open a large global market if the British project succeeds.

Rolls-Royce and Rolls-Royce SMR did not immediately respond to Reuters' requests for comment outside regular business hours.

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https://www.reuters.com/business/energy/rolls-royce-weighs-funding-options-including-ipo-small-nuclear-unit-ft-reports-2025-08-30/