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.
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