Markets News 

Ocado entering U.S. market through technology deal with Kroger

“Ocado Group PLC OCDO, +47.32% which runs online delivery services and makes related software, said Thursday it’s signed a partnership agreement with supermarket chain The Kroger Co” writes Markets Reporter for marketwatch.com. KR, +0.77% under which Kroger will use Ocado’s technology in the U.S. for grocery and other food-distribution activities.As part of the agreement, Kroger will buy a 5% stake in the British company by purchasing more than 33.1 million new, ordinary shares at a value of £183 million ($247 million).Kroger and Ocado are working to choose the first three sites for 2018 for development of automated warehouse facilities in the U.S. Ocado said up to a total of 20 facilities will be identified for development over the first three years of the agreement. Ocado expects the earnings impact from the Kroger deal to be neutral in fiscal year 2018.
 
Source: marketwatch.com



Share This:

Related posts