Ocado shares boosted by hopes of US deal
Shares in Ocado tracked higher on the back of speculation the online grocer could finally be close to agreeing a technology deal with an international retailer.
Investors have been losing patience after Ocado failed to hit its self-imposed deadline of sealing an agreement by the end of 2015.
However, reports that it has brought on consultants at Mace to advise on a potential US debut has lifted hopes that an overseas deal is in the offing.
Observers believe that a natural US partner could be Florida-based Publix Super Markets, which has been attempting to tap into the online market.
Shares in Ocado rose by 11.4p, or 3.8pc, to 312.1p in morning trade.
Publix, which has 1,100 stores, previously agreed a deal with US app Shipt to deliver groceries in South Florida, but the service has struggled to keep up with demand.
Publix, which is valued at $18bn (£15bn) in New York, is one of the largest US regional grocery chains and serves Florida, Georgia, North Carolina, South Carolina, Virginia and Alabama.
Ocado has previously said that it would focus on deals in Europe and North America with French supermarket Carrefour a long-rumoured partner.
The online grocer hopes to boost its profits by licensing its grocery logistics technology, which is used in the UK by Waitrose and Morrisons.
Tim Steiner, chief executive of Ocado, said in February that he expected to “sign multiple deals in multiple territories in the medium term”.
However, tensions between Morrisons and Ocado last year were thought to have delayed progress with other prospective partners.
Morrisons is understood to have threatened not to take capacity at the online grocer’s new distribution warehouse in Erith, south London, unless it was allowed to tweak its 25-year agreement.
Ocado agreed to amend its contract after the Bradford-based supermarket signed a deal with US internet giant Amazon to supply fresh and frozen food in the UK.
Morrisons can now pick online orders from its supermarkets in areas that Ocado does not offer a service in return for taking space in Ocado’s Erith centre. The amended agreement still needs to be finalised.
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