Ocado shares jump more than 40% on speculation of Amazon takeover

Shares of British online grocer Ocado Group soared much than 40% Thursday aft The Times paper reported "speculation of bid involvement from much than 1 American suitor."

The study suggests that large exertion players could beryllium weighing up their options with regards to Ocado and picks retired Amazon arsenic a perchance funny party.

Ocado and Amazon some declined to remark erstwhile contacted by CNBC.

Shares of Ocado jumped arsenic overmuch arsenic 43% connected the news, earlier paring gains. The London-listed banal terms was past seen trading up astir 35%.

Ocado licenses market transportation technology, which is utilized successful the company's retail part to bring food, beverages and household goods to much than 800,000 customers crossed the U.K., according to the institution website.

Ocado sells own-brand items arsenic good arsenic Marks & Spencer products. Shares of Marks and Spencer were up 3% during day deals successful London.

Ocado boomed during the Covid-19 pandemic arsenic Brits successful lockdown turned to online market deliveries but the company's shares person since waned and the London Stock Exchange subsidiary FTSE Russell suggested successful May it could autumn retired of the FTSE 100 altogether. 

In February, the institution reported a pre-tax nonaccomplishment of £501 cardinal ($652 million) for the twelvemonth to November 2022, which was worse than expert expectations.

Ocado attributed its losses to customers moving distant from their ample handbasket buying habits of the pandemic, unit from the cost-of-living situation and inflationary strains, and accrued selling spending.

Reports had circulated successful December saying that Ocado's plans to grow had been enactment connected ice, past successful April the institution announced it would beryllium closing its oldest automated warehouse successful Hatfield, northbound of London.