Companies

ABF to separate Primark from food business by 2027

Apr 23, 2026 United Kingdom

Following an in-depth review of the company’s structure, the board of Associated British Foods (ABF) has announced plans to separate the fashion retailer from its food business before the end of 2027

Michael McLintock, Chair of ABF, said that “the 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”.

After conducting an in-depth review of its structure, which was announced last autumn, ABF has revealed its intention to finalise the demerger of Primark before the end of 2027, pending the necessary regulatory approvals and tax clearances. The demerger is expected to be carried out via a dividend demerger.

According to the statement, this split will provide clearer governance and investment profiles, and greater accountability to shareholders, for both the food business and Primark. The decision was made with the approval of Wittington Investments Limited, ABF’s largest shareholder, which will maintain majority ownership of both Primark and FoodCo.

Going forward, Primark and FoodCo will both be listed on the London Stock Exchange, with FoodCo retaining the Associated British Foods name.

Michael McLintock will remain as chair of Associated British Foods until the demerger is completed, to ensure a smooth transition. The future board structures will be confirmed ahead of the split. But according to the statement, George Weston is expected to lead the food business and Eoin Tonge will head Primark.

Confirmation of the spinoff came as ABF posted a 19% fall in adjusted interim pre-tax profits in the 24 weeks to the 28^th of February, which stood at 663 million British pounds (764.9 million euros), while maintaining its outlook for the full year. Group sales fell by 2% to 9.46 billion British pounds (10.9 million euros).

Primark’s sales increased by 2% during the period, with new store openings contributing an additional 4% to this growth. However, ABF warned that if the conflict in the Middle East persists and consumer spending deteriorates, the retailer’s sales could be at risk.

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Image Credits: reuters.com

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