(Il Sole 24 Ore Radiocor) - Milano, 21 apr - Associated British Foods said that following an in-depth review, it has decided to demerge its retail business Primark from its food business FoodCo, with shareholders holding shares in both listed entities upon completion, expected before the end of 2027.

The review of the group structure was undertaken in consultation with Wittington Investments, ABF's largest shareholder. Wittington is supportive of the proposed demerger and remains committed to maintaining majority ownership of both Primark and FoodCo, ABF said.

George Weston will be chief executive of FoodCo and Eoin Tonge will be CEO of Primark.

ABF anticipates dis-synergies of below 45 million pounds and one-off separation and transaction costs of around 75 million pounds.

Following the demerger, FoodCo will retain the Associated British Foods name.

The separation of Primark from ABF is expected to be effected by way of a dividend demerger.

To ensure a smooth transition through the demerger process, the board has asked ABF's current chair, Michael McLintock, to continue as chair of ABF until the completion of the demerger. The composition of both future boards will be determined and announced prior to the demerger effective.

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(RADIOCOR) 21-04-26 08:56:10 (0194) 5 NNNN