Associated British Foods to split Primark from food businesses. The fashion retailer, operating 486 stores across 19 markets with annual revenues of £9.5 billion, will become a standalone company with its own board and dedicated investors. AB Foods believes both entities will be better valued separately by financial markets. Primark has faced intensifying competition from Chinese online giants Shein and Temu, while the broader group reported an 18% fall in first-half core profit. The demerger is expected to complete before the end of 2027, with separation costs around £75 million. AB Foods shareholders will hold shares in both listed entities, anticipated to join the FTSE 100. Analysts suggest the split should improve investability in the medium to long term, though consumer outlook remains challenging.
