Morrisons to launch £1bn bid for Ocado?

Apr 24, 2013

Morrisons has been slow to develop online presence but will follow other supermakets onto the web

RUMOURS suggest that supermarket chain Morrisons is to launch a £1bn offer for Ocado, reports the Daily Mail.

Morrisons has been slow to develop an online presence, leaving it at a disadvantage to rivals. Shares in Morrisons moved up 3.4p to 286.6p amid the speculation that chief executive Dalton Philips and his board, which has already made a commitment to commence online grocery by January 2014, will launch a full-scale bid for Ocado, which is currently valued at £890m.

Morrisons revealed its first profit drop in six years following a disappointing performance over the Christmas period last month The company confirmed a seven per cent fall in pre-tax profits to £879m in the year to February 3, with like-for-like sales down 2.1 per cent.

Meanwhile, Asda yesterday announced plans to create 2,500 jobs in the UK through a £700m investment in its outlets and online operation.

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