Shares in Ocado and Marks and Spencer (M&S) have risen after talks of a joint venture was imminent, as reported by the Evening Standard newspaper.
Ocado said, “Following media speculation, Ocado Group plc confirms that it is in discussions with Marks and Spencer Group Plc regarding a joint venture in UK retail.
“There is no certainty that these discussions will result in any agreement or as to the timing of any such agreement.”
M&S shares rose by 4% and Ocado shares shot up 10% over the media speculation.
Naeem Aslam, chief market analyst at ThinkMarkets said, “M&S joining forces with Ocado is music to investors’ ears; the news could not have come at a better time.
“The products offered by M&S have always been loved by its customers and M&S has a specific kind of clients who are not massively sensitive to price.
“They need quality products and M&S has that.
“It was lacking a reliable delivery source, and now with Ocado on its belt, this will improve the revenue.
“There is just huge potential for synergy and investors are paying attention to this.”