Associated British Foods demerger

The potential demerger comes as ABF faces pressure to unlock value for shareholders as its diverse portfolio struggles with varying economic headwinds.

Primark has shown resilience in the discount fashion sector, while the food division has dealt with rising commodity costs.

A formal announcement is expected this week when the group releases its latest financial results.

The move would mark one of the most significant corporate restructurings in the UK retail sector in recent years.