Amazon may soon acquire the British online grocer Ocado Group

Shares of Ocado Group PLC (LON: OCDO) jumped about 40% today after “The Times” said Amazon.com Inc (NASDAQ: AMZN) may be interested in buying the online grocer.

Amazon refused to comment on the report

The report did also suggest that it wasn’t the only one in the United States considering a bid for Ocado Group. According to Danni Hewson – Head of Financial Analysis at AJ Bell:

Shares have been about as flat as an open bottle of lemonade since the pandemic but third parties, including reportedly Amazon, may still see value in the brand, tech, and infrastructure.

Excluding the price action this morning, Ocado shares were down nearly 50% versus their year-to-date high.

Both Amazon and the Hatfield-headquartered firm that licenses grocery delivery technology refused to comment on the report on Thursday.  

Ocado came in shy of estimates in fiscal 2022

The news arrives months after Ocado Group PLC reported a worse-than-expected £501 million of pre-tax loss for its fiscal 2022.

It was a notable beneficiary of the COVID pandemic but seems to have lost its mojo ever since the United Kingdom pulled out of the lockdowns. Data from IHS Markit suggests 15.5% of its free flat is on loan.

Rest assured, if Amazon indeed moves forward with a formal proposal to takeover Ocado, the Competition and Markets Authority of the United Kingdom will scrutinize the deal closely.  

Earlier this week, though, the regulator cleared its $1.7 billion buyout of iRobot as Invezz reported here. Wall Street currently has a consensus “hold” rating on Ocado stock.