British online grocery firm Ocado has abandoned its pursuit of a 190.7 million pound payout from partner Marks & Spencer regarding their home delivery joint venture, Ocado Retail.
The decision ends a long-running dispute between the two companies after M&S withheld the final installment over disappointing performance metrics.
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The two corporations originally formed a 50-50 partnership in Ocado Retail, with M&S paying 560 million pounds upfront for Ocado's logistics and delivery framework.
The additional 190.7 million pound conditional payment was tied to undisclosed performance targets that M&S maintained were not achieved.
Ocado had previously threatened formal legal action against M&S to secure the funds, insisting it possessed a strong legal standing to negotiate a settlement.
“We are very confident we are owed a substantial sum of money,” said Chief Executive Tim Steiner to shareholders in 2024.
However, Ocado has shifted its strategy toward expanding the operational reach of the joint venture rather than pursuing litigation over the withheld funds.
“Ocado Retail continues to be the UK’s fastest-growing grocer, and we were pleased to announce in last week’s half-year results that the business is now profitable across all key measures,” said a spokesperson for Ocado.
The company emphasized its commitment to scaling customer order capacity alongside its commercial partners.
“We expect to build further on this momentum in the coming months by expanding order capacity for customers while maintaining strong growth.
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