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M&S joins forces with Ocado

The high-street behemoth has turned to the online grocer to take its food business digital
M&S joins forces with Ocado

The announcement of one joint venture has caused two very different share price reactions. Marks and Spencer (MKS) has confirmed a new 50/50 partnership with online grocer Ocado (OCDO), aimed at taking the former’s food division digital. The deal will see M&S pay up to £750m in order to acquire a 50 per cent stake in Ocado’s UK retail business, while the new entity – to be known as Ocado.com – will effectively replace Ocado’s existing relationship with high-end supermarket Waitrose come September 2020. In a similar way, the new platform will offer customers Ocado’s own-brand products alongside M&S ranges.

IC TIP: Hold at 276p

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