Associated British Foods (LSE:ABF) has decided to proceed with a demerger of its Retail business, Primark, from its Food business (FoodCo) following an in‑depth structural review announced in November 2025. The Board intends the demerger to take effect before the end of 2027, subject to approvals and tax clearances, and says shareholders will hold shares in both listed companies.
The review was carried out with Wittington Investments, ABF's largest shareholder, which the Board says is supportive and committed to maintaining majority ownership of both Primark and FoodCo. The Board expects aggregate dis‑synergies to be below £45 million and one‑off separation and transaction costs to be around £75 million.
Primark is described as a global retailer operating 486 stores across 19 markets with approximately £9.5bn of annual revenue and more than 83,000 employees; FoodCo is said to operate globally across 521 countries with c.£9.8bn of revenue and around 55,000 employees.
"The Board has now completed its in‑depth review of the structure of ABF and has concluded that a demerger of Primark is the best way to maximise long‑term returns for shareholders, reflecting Primark's scale today and the need for a better understanding of the Food business. The opportunities ahead for both Primark and FoodCo are considerable and the Board firmly believes that each will thrive as an independent entity," Michael McLintock, said.
George Weston added: "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."
To steer the transition, Mr McLintock will remain ABF Chair until completion. Management intends George Weston to be Chief Executive of FoodCo and Eoin Tonge to be Chief Executive of Primark, with the composition of both future boards announced ahead of the demerger.
