The FTSE giant said it was considering a possible break-up as part of a strategic review, prompted by Primark’s recent growth.
The retail chain accounts for about half of ABF’s revenues, which fell from £20bn (€22.7bn) to £19.5bn last year.
As well as owning Primark, ABF is also one of the world’s largest sugar producers and owns a number of grocery brands.
The food and retail conglomerate, which is listed in London but controlled by the Canadian billionaire Weston family, said it was reviewing the group’s structure “given the scale that Primark has now attained”.
Following a recent expansion push, Primark now has 460 stores spanning 17 countries, including 195 in the UK. Sales at Primark rose to €10bn in the year to September.
George Weston, the chief executive of ABF and grandson of the group’s founder Garfield, said: “Primark has an incredibly strong international brand, a powerful customer proposition and substantial growth opportunities.”
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He added the group’s food business, which includes brands such as Twinings Tea, Jordans cereals and Ryvita, was “a highly attractive portfolio” but believes it has not been as well understood compared to Primark.
ABF said the review was being carried out in consultation with its largest shareholder, Wittington Investments, the holding company for the Canadian billionaire Weston family.
The group added that it “remains committed” to keeping a majority share in both the food business and Primark.
Michael McLintock, chairman of ABF, said the review was being carried out because of “the need for a better understanding of our food business”.
Shares in ABF are up more than 35pc over the past five years, but are flat over the last 12 months.
Primark was hit by the shock departure of its former chief executive Paul Marchant earlier this year. Mr Marchant resigned in March after acknowledging he had made an “error of judgment” towards a woman.
Eoin Tonge, ABF’s finance director, has led the fast fashion group on an interim basis since the end of March.
(Daily Telegraph)
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