Shareholders of Associated British Foods are increasingly concerned that plans to spin off its discount clothing chain Primark could make both businesses riskier investments. The company is expected to confirm the separation at its half-year results, a move that would end the current structure where the food and clothing divisions help balance each other during economic swings.

Investors fear that as standalone companies, Primark and the remaining food business would become more exposed to global economic pressures. One investor warned that both operations could become more cyclical and vulnerable without the stability provided by their combined performance.

Analysts have also raised questions about how Primark would fare on its own amid growing competition from Chinese online retailers Shein and Temu. At the same time, the food division could face higher energy costs linked to conflict in the Middle East, adding further uncertainty for shareholders.