The shares of Ocado Group, a British online grocer, experienced a significant increase after reports from The Times suggested potential interest from multiple American suitors.
The report states that major technology companies may be considering their choices regarding Ocado, and identifies Amazon as a possible interested party.
Following the news, Ocado shares experienced a significant increase of up to 43%, but later reduced the gains and closed 32% higher in the London stock market.
According to the company website, Ocado utilizes licensed grocery delivery technology in their retail division to provide food, beverages, and household goods to over 800,000 customers in the U.K.
Ocado sells own-brand items as well as Marks & Spencer products. Shares of Marks and Spencer were up 3% during afternoon deals in London.
Ocado experienced a surge in business during the Covid-19 pandemic due in part from increased demand for online grocery deliveries. However, the company’s shares have decreased since then and there has been discussion, including from the London Stock Exchange subsidiary FTSE Russell in May, about the possibility of Ocado being removed from the market altogether.
The company’s report in February stated a pre-tax loss of £501 million ($652 million) for the year ending in November 2022, exceeding analyst predictions.
