The head of Associated British Foods yesterday announced plans to resign as chief executive but remain in his other role as chairman.

Mr Garry Weston, who has been in the joint role for 32 years, will be replaced as chief executive by Mr Peter Jackson, currently chief executive of ABF's British Sugar subsidiary.

Mr Weston said the move was made necessary by the continued growth in the size and complexity of the company, which owned Quinnsworth prior to the acquisition by Tesco.

He added that the move would ensure strong leadership and clear direction for the future. Shares in the group gained on the news as City investors said they preferred the less centralised board arrangement.