LONDON (Reuters) - British retailer Marks & Spencer is in talks with online supermarket Ocado (LON:OCDO) to secure a food delivery service for the first time, sending shares in both groups soaring.
The companies released a short statement on Tuesday, saying there was no guarantee a deal would emerge, after London's Evening Standard newspaper said Marks & Spencer (M&S) was set to pay up to $1.2 billion for a 50 percent stake in a joint venture with Ocado.
Ocado, founded by three Goldman Sachs (NYSE:GS) bankers 18 years ago, has been transformed in the last year after it struck major deals to sell its technology to international retailers such as U.S. group Kroger (NYSE:KR) Co, France's Casino.
The Evening Standard report suggested Ocado would use M&S as a supply partner for British customers. It was not clear what this would mean for its current partnership with the John Lewis-owned Waitrose supermarket chain.
Shares in Ocado were up 10 percent at 1142 GMT, while M&S was up 4 percent.