A robotics and automation company backed by Walmart Inc. (NYSE:WMT), the world's biggest store-based retailer, is in talks to merge with a "blank cheque" company set up by the Japanese technology giant SoftBank Group Corp. (TSE:9984) . Sky News has learnt that Symbotic LLC, which is run by founder Rick Cohen, is in discussions with SVF Investment Corp.

3 (NasdaqCM:SVFC), a New York-listed special purpose acquisition company (SPAC), about a deal that would value the merged entity at about $4.5bn (£3.3bn). One investor said an agreement was possible within weeks. If successfully completed, Walmart is expected to participate in the capital-raising element of the deal known as the PIPE (private investment in public equity) alongside other investors.

The extent of Walmart's prospective involvement was unclear on October 18, 2021. Symbotic's talks with the SoftBank SPAC come at a time of unprecedented strain on the logistics functions of major retailers, with labour shortages, the energy crisis and shipping bottlenecks combining to pose enormous headaches ahead of the crucial Christmas trading period. Other details of the potential tie-up between the SoftBank SPAC and Symbotic are unclear, although one insider who has been involved with multiple SPAC transactions said there remained a possibility that the deal could yet falter.

That SPAC deal is scheduled to complete this week. SoftBank declined to comment on October 18, 2021, while Symbotic did not respond to a request for comment.