Associated British Foods will spin off its Primark retail arm into a separate listed company, aiming to unlock value and sharpen focus for both its fashion and food businesses. The demerger is expected to give investors direct stakes in each entity while addressing Primark’s valuation discount.

Associated British Foods to split Primark from its food businesses

April 21, 2026

James Davey/Reuters

The Primark sign is displayed on the outside of the clothing store on Oxford Street in London, Britain, April 19, 2026.

Jack Taylor/Reuters

Associated British Foods ABF.L has decided to separate its Primark fashion chain from its food businesses through a demerger following a review of the group’s structure, it said on Tuesday.

On completion of the demerger, AB Foods shareholders will hold shares in both listed entities.

In addition to Primark, which trades from 486 stores in 19 markets and contributes over half of AB Foods' profit, the London-listed group owns grocery brands such as Ovaltine, Ryvita and Twinings, as well as major sugar, agriculture and ingredients operations.

Shares in the group have fallen 14% over the last year, giving it a market capitalisation of 13.3 billion pounds ($18.0 billion).

Most analysts' sum of the parts valuations of AB Foods show Primark trades at a significant discount to peers.

The group launched a review of its structure last year with a view to maximising long-term value.

The review was conducted in consultation with AB Foods' largest shareholder Wittington Investments - the holding company for the Weston family - which is committed to maintaining majority ownership of both businesses.

AB Foods has said the financial markets will better understand and appreciate the food businesses if Primark was a standalone listed business, while Primark now has the scale and growth opportunities to go it alone.

-James Davey/Reuters