Ocado shares soar as it strikes 'transformational' deal with US giant Kroger

Ocado’s shares soared by almost a third to an all-time high after the online supermarket announced it will build as many as 20 robotic warehouses in the US as part of a landmark deal with American supermarket giant Kroger that will significantly accelerate its plans to become a global supplier of white-label online shopping technology.

Kroger, which is second only to Walmart in terms of US market share, with revenues last year of $122bn (£90bn), will also take a 5pc stake in the FTSE 250 firm at a value of £183m.

The two companies said they were already looking for sites for their first three warehouses and planned to identify up to 20 within the first three years of their deal. Ocado will also allow Kroger to use its online shopping and logistics technology.

Tim Steiner, Ocado’s chief executive, said the deal would be “transformational” and “reshape the food retailing industry in the US in the years to come."

The news sent Ocado's shares up 31pc in early trade to 725p.

Kroger will be Ocado’s exclusive partner in the US and the UK company said it had ended discussions with Kroger's rivals.

Ocado had kept investors waiting for years after setting out a strategy to grow faster by providing its technology to other supermarket chains overseas as well as being an online retailer in its own right.