Associated British Foods confirmed it will spin off its fast‑fashion arm, Primark, creating two separately listed companies on the London Stock Exchange. The move follows a strategic review with Wittington, the conglomerate’s largest shareholder, and comes after the group hinted at a possible split in November. Investors will receive shares in both entities after the de‑merger.

Primark contributes the bulk of AB Foods’ adjusted earnings, and its rapid growth has tipped the board toward separation. By isolating the apparel business, the group aims to give each segment clearer valuation metrics and greater operational focus. Analysts expect the split could unlock shareholder value, especially as the retailer outperforms slower‑moving food divisions.

The de‑merger will list both companies in London, meaning current shareholders automatically hold stakes in the newly independent retailer and the remaining food operation. Market participants will now price the two businesses on distinct fundamentals rather than a blended conglomerate. The split finalises AB Foods’ strategy to streamline its portfolio.

The transaction does not involve cash outlays; instead, AB Foods will allocate existing assets to each new entity. With the sugar business and other food brands remaining under the parent, the company retains a diversified revenue base while allowing Primark to pursue its expansion agenda unencumbered. Share prices reacted positively as the split was disclosed.