ABF confirms it will spin off Primark from its food businesses
Associated British Foods has confirmed it will separate Primark from its food businesses through a demerger, ending months of speculation.
On completion of the demerger, which is expected by the end of 2027, ABF shareholders will hold shares in both listed companies, with both expected to be constituents of the FTSE 100.
The separation of Primark, which trades from 486 stores in 19 markets and generates more than half of ABF profits, has seemed likely since ABF launched a review of its structure last year.
The review was conducted in consultation with AB Foods’ largest shareholder Wittington Investments – the holding company for the Weston family.
In a statement, ABF said it is ‘confident’ in the long-term prospects of both businesses.
Chief executive George Weston said: ‘This is an important step in the evolution of ABF. For our Food business, the separation will enable greater understanding of the breadth and strength of our differentiated portfolio and its long-term growth opportunities as the only FTSE100 pure play food producer.
‘For Primark, it enables the creation of appropriate governance to maximise the future potential offered by Primark’s powerful brand, strong customer proposition and opportunities in existing and new markets.’
This is a developing story
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Freetrade
Freetrade
Investing Isa now free on basic plan
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.