Investor Alert

New York Markets After Hours

Aug. 9, 2016, 2:46 a.m. EDT

Morrisons seals new deal with Ocado

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

or Cancel Already have a watchlist? Log In

By Jana Simmons

LONDON--Wm. Morrison Supermarkets PLC (MRW.LN) on Tuesday said it has finalized an agreement with online grocer Ocado Group PLC (OCDO.LN) that will enable Morrisons.com to utilize Ocado's technology.

The company said it re-negotiated some components of its original contract with Ocado. The principal changes are that the restriction on store pick has been lifted, the profit share agreement will be cancelled and the research and development fee will be reduced.

As previously announced, Morrisons has also agreed to take capacity in Ocado's new customer fulfillment center in Erith, south east London. Morrisons said this arrangement has significantly lower upfront capital costs than the original operating agreement and includes an option to break after five years.

Morrison shares closed Monday at 188 pence.

Write to Jana Simmons at jana.simmons@wsj.com

This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.