Ocado’s Steiner Expresses Confidence in Joint Venture with M&S
- Ocado CEO plans to retain stake in Ocado Retail joint venture with Marks and Spencer
- £750m deal for 50% stake completed five years after signing
- No obligation for either party to sell shares after completion of the deal
- Ocado.com is fastest growing among rivals, up 10.7% in sales over 12 weeks to July 7
- Future ownership structure of joint venture unclear
Ocado CEO Tim Steiner has announced plans to retain the company’s stake in Ocado Retail, its joint venture with Marks and Spencer (M&S), despite concerns about its performance. The £750m deal for a 50% stake will complete in five years, after which both parties can choose to sell their shares. Steiner expressed confidence in the venture’s growth potential, stating that Ocado.com is the fastest growing among rivals with sales up 10.7% over the past 12 weeks. However, the future ownership structure remains unclear.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Ocado CEO’s stance on retaining the stake in Ocado Retail, mentions relevant details about the joint venture agreement, and includes data from Kantar regarding Ocado.com’s performance. However, it does not include any personal opinions or bias.
Noise Level: 3
Noise Justification: The article provides relevant information about Ocado CEO’s stance on retaining the stake in Ocado Retail and mentions key performance metrics. It also includes quotes from Steiner and M&S chair Archie Norman. However, it could benefit from more analysis or context on the potential long-term implications of the joint venture and its impact on the industry.
Financial Relevance: Yes
Financial Markets Impacted: Ocado Retail and Ocado Group
Financial Rating Justification: The article discusses the financial performance and ownership structure of Ocado Retail, a joint venture between Ocado Group and Marks and Spencer. It also mentions the potential impact on the stocks of these companies as they decide whether to sell or retain their stakes in the joint venture.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article. The content discusses business decisions and strategies between Ocado Group and Marks & Spencer regarding their joint venture, Ocado Retail.
www.retailsector.co.uk 
www.retailgazette.co.uk