Amazon is again rumored to be considering a takeover of British-based Web supermarket Ocado, and this time the chatter has led to an 18-percent spike of Ocado’s stock price, according to published reports.
The Daily Mail, a British newspaper, reports that rumors are circulating about Amazon’s plans to expand Prime Pantry, the name of the home-delivery grocery service the retailer operates in Britain, and the speculation is that it makes sense for Amazon to just buy Ocado.
Though all of this is unconfirmed, investors sent Ocado’s previously slumping stock to 2.85 British pounds per share this morning. Before the stock spike, Ocado’s share price was below a pound.
The Mail cited an unnamed broker, who said that with Ocado’s stock so cheap, Amazon could save money by acquiring Ocado rather than building out Pantry’s offering on its own. Ocado offers a larger selection than Pantry, according to the Mail. After the run-up in share price, Ocado’s market value is 1.6 billion pounds or $2.2 billion.
When the paper contacted spokespeople for both Ocado and Amazon, the reps declined to comment.
Amazon began placing big bets on home grocery delivery in 2007 when it launched its AmazonFresh service in Seattle. In recent years the company has steadily expanded into other US cities, including San Francisco, New York and Philadelphia.