Ocado has sold half of its UK retail business to Marks & Spencer in a £750m deal that will create a new online grocery delivery firm called Ocado Retail.

The tie-up means that from September 2020 more than three-quarters of the UK population will be able to get M&S food products delivered by Ocado.

Ocado shoppers will be able to choose from more than 6,500 M&S products while shopping on Ocado.com, alongside the retailer’s own brands and own label products. At the moment, access to the full M&S food range is limited to about a dozen stores.

The partnership was announced in February and completed today. It will bring an end to Ocado’s relationship with middle class favourite Waitrose.

Steve Rowe, M&S CEO, said: “I have always believed that M&S Food could and should be online. The addition of Ocado to our family of businesses marks M&S’s first truly transformational step in shaping our future as a digital first retailer.

“Through its unique technology, Ocado has developed the most cost advantaged model in online grocery retail and our new partnership unlocks growth for M&S Food through an immediately profitable, scalable presence in the UK’s fastest growing grocery sales channel.”

Tim Steiner, Ocado’s chief executive officer, said: “Ocado Retail’s future, as part of a joint venture with M&S, is full of opportunity. The new company will be able to offer customers even greater range, service, quality and value. Our collaboration will also allow us to grow the business faster, add more jobs, and create more value for all our stakeholders. We are very excited to be working together.”