Executive Summary

• The UK’s Marks & Spencer (M&S) and Ocado Group have announced the creation of a 50/50 joint venture.
• M&S is acquiring a 50% share of Ocado’s UK retail business, for a total consideration of up to £750 million.
• A combined M&S-Ocado service offers M&S a way to sell online while circumventing the unfavorable economics of its typically small basket sizes.