Associated British Foods (AB Foods) confirmed it will split its food and clothing businesses after a review with its largest shareholder, Wittington. The move will see Primark spun off and both entities listed separately on the London Stock Exchange. The announcement follows AB Foods’ latest profit report.

AB Foods posted a pretax profit of £632 million for the 24 weeks to Feb. 28, down from £692 million a year earlier. The decision to demerge was announced in November, when the company signaled its intent to separate the units. Investors now face a dual‑listing scenario that could unlock value for shareholders.

Primark’s brand strength and retail footprint have long been a growth engine, while AB Foods’ core grocery business remains highly liquid. Separating the entities allows each to pursue tailored strategies, attract dedicated capital, and potentially improve operational focus. Market watchers will assess how the split impacts shareholder returns and valuation multiples.

The demerger will create two distinct listings, potentially boosting each company’s market valuation by reducing conglomerate drag. Analysts expect the split to clarify financial performance and unlock hidden synergies. Investors will need to evaluate whether the combined valuation exceeds the sum of the parts once the transaction completes for long-term.