Win-Win Deal: Food Range and Marks Spencer

win-win deal: Steve Rowe, Marks & Spencer's chief executive, said he had always believed that M&S food could and should be online and combining M&S's upmarket food range with Ocado's technology and delivery network was a win-win deal that would drive long-term growth . However, M&S shares fell by 12% as investors and analysts raised concerns that the 134-year-old high street retailer had overpaid for access to Ocado's technology and delivery network, according to The Guardian. The plunge in M&S's share price the biggest one-day fall since 2016 wiped more than 550m off the retailer's market value. M&S will pay Ocado 750m for a 50% share of the new Ocado joint-venture, which will begin trading in September 2020, when Ocado's deal to supply Waitrose products expires. Ocado's shares rose by 3%. Rowe rejected suggestions that M&S had paid too much to get into the growing internet grocery business. Tim Steiner, the founder and chief executive of Ocado, said I think Steve and his team have taken an incredibly smart risk today. We think we're paying a fair price and I think Ocado do too, he told reporters on Wednesday. (news.financializer.com). As reported in the news.