OCADO DROPS £190M LEGAL CLAIM AGAINST MARKS & SPENCER

Ocado has ended its legal dispute with Marks & Spencer over a disputed £190 million performance payout linked to their joint online grocery venture. The payment was due under the terms of the companies' 50-50 partnership in Ocado Retail, established as part of a broader £750 million deal that enabled M&S to sell food online for the first time. M&S declined to make the final payment after Ocado Retail failed to meet performance targets originally set in 2019.

Ocado chief executive Tim Steiner had previously argued that extenuating circumstances, including the Covid pandemic, should have been considered when assessing the business's performance against those targets. In 2024, Steiner told shareholders that Ocado was "very confident we are owed a substantial sum of money" and warned it would use "all available means" to obtain the cash. The company had signalled a strong negotiating position to achieve a settlement.

Ocado now says it intends to focus on expanding the potential of Ocado Retail rather than pursue the outstanding payment. The business reported profitability across key measures in recent half-year results and described itself as the UK's fastest-growing grocer. M&S said in a statement: "We have a good relationship with Ocado" and stated both companies remain focused on realising the partnership's potential, though the retailer is reportedly pushing for technical improvements and better contract terms with Ocado.