Ocado plc (OCDDY) shares surged the most in nearly a year Monday on speculation that it could become an acquisition target for Amazon Inc. (AMZN) after the online giant launched a $13.7 billion takeover of upmarket grocer Whole Foods Market Inc. (WFM) last week.
Ocado shares gain around 6.7% in the opening 45 minutes of trading, the biggest jump since August, to change hands at the top of the Stoxx Europe 600 index at 294.4 pence each and valuing the U.K.-based online grocery store at around £1.9 billion ($2.43 billion)
Amazon's swoop for Whole Foods hit shares in U.S. and U.K.-based grocery stores amid concern that already-depressed margins, largely as a result of global food price deflation, will continue to pressure margins. However, it has also opened the door to more possible M&A and increased speculation that Amazon may do similar deals in other areas.
Visit here for the latest business headlines.