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Ocado is reportedly set to receive an estimated £190m after its food delivery joint venture with M&S is thought to have surpassed its current performance targets.
According to This is Money, M&S is expected to confirm next month that its performance targets have been met, triggering the payment to Ocado as part of the agreement it struck with the online grocery retailer in 2019.
The outlet also reported that bosses at both firms are also confident of meeting the next set of targets which must be met by November 2023.
This is Money added that the payment will not need to be made until the performance deadline at the end of 2023. Following this, it has been agreed that M&S will take control of the board of the joint venture.
Under the deal which was agreed in 2019 and officially launched in September 2020, M&S acquired a 50% share of Ocado’s UK retail business, for a total consideration of up to £750m, including a deferred consideration of up to £187.5m, plus interest.
It marked the first time M&S food was available for delivery.
