ABF Considers Primark Spin-Off with Rothschild

Associated British Foods is conducting a strategic review, advised by Rothschild & Co, that could separate its Primark discount-fashion chain from its food businesses to maximise long-term value. Majority shareholder Wittington Investments supports the move and intends to retain majority stakes in both entities, while the board has not yet decided a course of action. The decision follows a difficult year: group revenue fell about 3% to roughly £19.5bn and pre-tax profit declined to about £1.4bn amid heavy losses in sugar and the closure of the Vivergo plant, even as Primark’s adjusted operating profit rose with US sales growth and new store openings. ABF said it expects to update investors as soon as practicable, is aiming to conclude the review before interim results in April, and cautioned any separation process could take up to around 18 months. Shares dipped about 2.5–3.5% on the announcement, and analysts said a demerger could help investors better value the separate retail and food businesses.