The spin-off of Primark could be given the green light as soon as next week, despite turmoil on financial markets and the darkening global economic outlook.
Owner Associated British Foods is expected to outline plans to separate the fashion chain from its food businesses on Tuesday, when it updates investors on a review of the group’s structure.
In addition to Primark, ABF owns grocery brands such as Ovaltine, Ryvita and Twinings.
The separation of Primark, which trades from 486 stores in 19 markets and generates more than half of ABF profits, has seemed likely since ABF launched a review of its structure last year.
Separation: Primark trades from 486 stores in 19 markets and generates more than half of ABF profits
Chief executive George Weston said they hoped to conclude the review by April 21 when first-half results are published.
Ahead of the update, Richard Chamberlain, of RBC Capital Markets, said: ‘We expect ABF to confirm it intends to demerge Primark and Food… given the lack of synergy between the two.’
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