Ocado confirms talks with Marks & Spencer

(Sharecast News) - Ocado has confirmed that it is in talks with Marks & Spencer about a possible UK joint venture.The online grocery specialist made the statement following media speculation that it was looking at a new UK deal to replace its existing partnership with Waitrose."There is no certainty that these discussions will result in any agreement or as to the timing of any such agreement," Ocado said.Shares in Ocado immediately spiked 12% on the news to 989p, while M&S was up almost 4% to 304.4p just ahead of midday on Tuesday."M&S joining forces with Ocado is music to investor's ears, the news could not have come at a better time," said Naeem Aslam, market analyst at ThinkMarkets."The products offered by M&S have always been loved by its customers and M&S has a specific kind of clients who are not massively sensitive to price. They need quality products and M&S has that. It was lacking a reliable delivery source, and now with Ocado on its belt, this will improve the revenue."There is just huge potential for synergy and investors are paying attention to this."