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Associated British Foods (ABF) is expected to announce its decision regarding a proposed demerger of Primark from its food operations tomorrow (21 April).
News of the potential separation comes as the group, which is controlled by the Weston family, managed increased competition and rising costs across its diverse portfolio.
ABF confirmed in November 2025 it was reviewing a demerger of its fashion arm to maximise long-term value, and recruited advisors from Rothschild to conduct the strategic review.
The group owns Allied Bakeries, sugar production assets, and brands including Twinings, Patak’s, and Blue Dragon.
In January, the company reported that annual sales were likely to remain flat while profits were expected to decline.
According to market analysts, conflict in the Middle East has created further trading pressures. The City anticipates disappointing first-half results when the company reports on Tuesday (21 April).
While the group may choose to retain its current structure, its food business cashflows currently supports the international expansion of Primark in a difficult economic climate.
The decision is complicated by a Competition and Markets Authority (CMA) investigation into a merger between Allied Bakeries and Hovis. ABF has offered to sell its Northern Irish business to resolve competition concerns and prevent the regulator from blocking the deal.
The appointment of Eoin Tonge as the head of Primark last month has increased speculation that a split is imminent. Tonge is the former finance director of ABF, M&S, and Greencore.
