LONDON (Reuters) - Ocado (L:OCDO), the British online grocer and technology company, has signed a partnership deal with Sweden's ICA Group to develop its online business, it said on Wednesday.
Potential deals with overseas grocers are seen as the key influence on Ocado's stock market valuation. It has already bagged deals with France's Casino (PA:CASP) and Canada's Sobeys (TO:EMPa).
ICA is Sweden's market leader with around 1,300 stores and a share of around 36 percent.
ICA and Ocado will together develop ICA's first Customer Fulfilment Centre (CFC) in the Stockholm area. The build is expected to take approximately three years. CFCs elsewhere in Sweden will also be considered.
ICA will also move to use the British group's Ocado Smart Platform technology.
Ocado said it expected the deal to create significant long term value to its business, with the impact of the transaction set to be earnings neutral in the current financial year.
It said the deal would mean minimal additional capital expenditure in 2018 but additional capex in future years as development of the CFC project gets underway.