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Associated British Foods to Split Off Primark in 2027 Demerger
The demerger follows a review that found separate listings could better value Primark and the food business, which reported a 19% profit drop.
- Associated British Foods announced plans on Monday to spin off its Primark retail business by the end of 2027, creating two independent companies expected to list on the FTSE 100.
- Chairman Michael McLintock said the board concluded that "a demerger of Primark is the best way to maximise long-term returns," following a strategic review conducted with Wittington Investments, the Weston family's holding company.
- Primark operates 486 stores across 19 markets with more than 83,000 workers, while the food business employs around 55,000 and produces brands including Twinings, Ryvita, and Patak's; the separation involves around £75 million in costs.
- Facing intensifying competition from online retailers Shein and Temu, Primark has dealt with profit warnings, though executives believe the separation will help both units navigate challenging market conditions more effectively.
- Chief Executive George Weston called the split "an important step in the evolution of ABF," while analysts at RBC warned that the current consumer outlook remains quite challenging despite improved long-term investability.
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Primark Will Become a Standalone Retail Company Following Its Separation from ABF in 2027
The board of Associated British Foods has confirmed plans to split its foods and fashion businesses, although both will remain publicly listed and majority owned by the Weston family's Wittington Investments.
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Coverage Details
Total News Sources41
Leaning Left5Leaning Right7Center12Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 21%
C 50%
R 29%
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