Associated British Foods, the multinational conglomerate behind beloved British brands such as Kingsmill bread and Twinings tea, is taking a bold step to boost shareholder returns by demerging its fashion chain, Primark. Despite the looming threat of a global economic downturn due to the ongoing conflict in the Middle East, which may impact consumer spending, ABF has confirmed plans to break Primark off from its food-focused operations next year. The move, first proposed last year, aims to give Primark the freedom to operate independently and make decisions that prioritize growth and profitability. As one of the world's largest fast-fashion retailers, Primark's future trajectory will be closely watched, and this demerger could have significant implications for the company's future direction and ABF's overall financial performance.
ABF, which owns Kingsmill, Twinings and Patak’s, to demerge fashion chain to maximise shareholder returnsBusiness live – latest updatesPrimark is to break free from its sister food company, which owns Twinings, Kingsmill and Patak’s, next year despite warning that the conflict in the Middle East is likely to hit consumer spending.The fashion chain’s owner, Associated British Foods (ABF), confirmed the plan to split off Primark from the rest of the group, first mooted last year. Continue reading...
