DeepGreen Metals Inc. is in talks to go public through a merger with Sustainable Opportunities Acquisition Corp., a blank-check company, according to people with knowledge of the matter. Sustainable Opportunities Acquisition Corp. has begun discussions to raise new equity from potential investors for a transaction that's set to value the combined entity at about $2.8 billion, said the people, who asked not to be identified because the talks are private.

The special purpose acquisition company is seeking to raise around $200 million to fund the deal, an amount that may be increased, said some of the people. A deal, if agreed, could be announced in coming weeks. It's possible terms change or talks fall apart.

Representatives for DeepGreen and Sustainable Opportunities declined to comment.