Associated British Foods (ABF) said it will spin off its fashion arm, Primark, by the end of 2027, ending a 65‑year conglomerate structure. The demerger clears the way for the retailer to seek a standalone listing on the FTSE 100. Shareholders had a five‑month review period before the board approved the split and will create a pure‑play food group.

ABF reported a 2 % revenue dip to £9.7 bn for the 24 weeks to February, while pre‑tax profit fell 9 % to £632mn. CEO George Weston warned that higher costs from the Middle‑East conflict are “manageable” but flagged a risk to Primark sales if the war drags on and consumer spending weakens. The apparel chain contributed just under half of ABF’s total revenue last year.

The split will leave ABF focused on its food portfolio, which includes sugar, agriculture and grocery brands such as Twinings, Ovaltine and Patak’s. Analysts expect the new Primark listing to be valued on par with peers like Next, giving investors a clearer exposure to UK fast‑fashion growth. The move reshapes both the retail and food sectors under separate public owners.