Associated British Foods to Demerge Primark by 2027

Associated British Foods, one of the United Kingdom's largest consumer groups, announced on Tuesday that it plans to spin off its Primark discount retail chain by the end of 2027, separating the fashion business from its food and agriculture operations.

The demerger follows an in-depth review of the company's structure, aimed at enhancing long-term shareholder returns by allowing each entity to operate independently. Both the remaining food business, which will retain the Associated British Foods name, and Primark are expected to list on London's FTSE 100 index. Shareholders will receive shares in the new Primark entity, while Wittington Investments, controlled by the founding Weston family, will maintain majority stakes in both companies. The process is projected to incur about 75 million pounds in one-off separation and transaction costs, with a loss of under 45 million pounds in operational synergies.

Primark, headquartered in Ireland, operates 486 stores across 19 markets worldwide and employs more than 83,000 people. It generated annual revenues of approximately 9.5 billion pounds, accounting for roughly half of the group's sales. The food division, with around 55,000...