Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Ocado shares surge on Amazon takeover rumours

by June 23, 2023
June 23, 2023
Ocado shares surge on Amazon takeover rumours

Ocado shares have surged amid speculation that the online grocer might be the subject of takeover talks from Amazon or another US tech firm.

Ocado and Amazon declined to comment on the report in the Times, which sent shares in the struggling firm up more than 40% at one point.

They settled more than 30% higher.

Ocado was a market darling during the pandemic, ranking as the UK’s most valuable retailer, despite commanding a tiny fraction of purchases.

But views of the company have soured sharply as it grapples with the return of in-store shopping and rising prices.

Its share price has plummeted about 80% from its peak in 2020.

Analysts said that drop could make it a potentially attractive target for acquisition.

Under UK takeover rules, companies seriously exploring such moves typically have to disclose their interest to investors.

Amazon has been pushing to expand its grocery business for years, buying up Whole Foods and experimenting with till-less stores. In the UK, it owns a 16% stake in Deliveroo, a deal that only barely escaped objection from the UK competition authority.

In his annual letter to investors in April, chief executive Andy Jassy called grocery a “big growth opportunity” but said the firm was still looking for the right model. He has argued that the company will need to have a “mass physical offering” to become the major player it aspires to be.

Ocado was founded by three Goldman Sachs bankers in 2000, and started trading as a business in partnership with Waitrose in 2002.

Today its retail arm, a partnership with Marks & Spencer, counts just shy of one million active customers (as of the end of February), claiming about 12% of the UK online grocery market.

As well as delivering in the UK, the company has sold its technology to grocers around the world, including Krogers in the US, Casino in France and Aeon in Japan.

But it reported a hefty £500m pre-tax loss for 2022. At the time it said the downturn was a result of the “cost-of-living crisis compounding the impact of a return to more normal customer behaviours compared with lockdown restrictions in the prior year”.

Read more:
Ocado shares surge on Amazon takeover rumours

0
FacebookTwitterGoogle +Pinterest
previous post
Recession fears mount after rate rise
next post
HMRC says small business are now responsible for 56% of the UK’s ‘tax gap’

You may also like

Liberty Steel plans to cut 440 jobs in...

January 13, 2023

Unveiling the Secrets of Success with Charlie Day,...

March 22, 2024

Thank goodness for Mark Carney: The quiet genius...

March 10, 2025

Two in five SMEs had to stop or...

July 3, 2023

What will the customer experience look like in...

December 12, 2022

UK ‘energy crisis hotspots’ identify areas at greatest...

August 22, 2022

Secrets of Success: Catherine Storey, CEO of Freshbat

August 1, 2024

Flexible office provider Figflex to invest £2M to...

July 4, 2023

Innovate UK-funded biotech company accelerates cheaper drug and...

June 19, 2023

Two-thirds more SMEs experiencing difficulty in accessing finance...

August 14, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Harmony Squad: Supreme Court Issues Six Unanimous Decisions

      June 5, 2025
    • Quick Login to AmourFactory: A Beginner’s Guide

      June 5, 2025
    • Disabling Trump’s “Tariff Button”

      June 5, 2025
    • ‘Sick puppy’ Tim Walz should never have been on Dems’ 2024 ticket, Trump says

      June 5, 2025
    • Federal judge orders Trump to restore funding to Clinton-era agency gutted by DOGE

      June 5, 2025
    • Musk says Trump would have lost 2024 election without him as ‘Big Beautiful Bill’ feud continues

      June 5, 2025

    Categories

    • Business (8,149)
    • Investing (2,011)
    • Politics (15,535)
    • Stocks (3,128)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved