Marks & Spencer has entered into a joint venture with online supermarket pioneer Ocado and has thus forayed into the online full delivery service market.

On Wednesday, British retailer Marks & Spencer (M&S) has agreed to form a joint venture with Ocado, an online supermarket pioneer. The development assumes significance since it would provide M&S a full online food delivery service for the first time.

Under the deal, M&S, Britain’s best-known stores group, will purchase a 50% stake in Ocado’s UK retail business for up to $994 million (750 million pounds).

According to M&S, it will finance the deal through a rights issue and aims to raise up to 600 million pounds. It also said, it would be cutting its dividend by 40% to “a sustainable level”.