Argos will get its own share listing

The split will see both companies get their own separate share listings on the London Stock Exchange within the next six to 12 months, GUS said.

The move is the final step in the break up of the GUS group. Last year, it demerged the fashion house Burberry.

The Argos group includes the Argos retail chain, which has more than 650 stores, and Homebase DIY outlets.

Split for success

"Both ARG [Argos Retail Group] and Experian are now well-positioned in their chosen markets and both have proven management teams and clear strategies for growth," said GUS chairman Sir Victor Blank.

GUS BUSINESSES ARGOS RETAIL GROUP: Includes the Argos Retail chain (more than 650 stores and sales of about �4bn), the Homebase DIY chain (nearly 300 stores and sales of more than �1.5bn) and ARG Financial Services EXPERIAN: Employs 12,000 people in 31 countries. Headquarters in Nottingham and in Costa Mesa, California. Annual sales of more than �1.5bn See GUS's share price

"A UK demerger will enable all of GUS' existing shareholders to continue to participate directly in the future development of these successful businesses."

GUS said that both businesses would continue to be led by their existing management teams, with Terry Duddy remaining as chief executive of Argos and Don Robert as chief executive of Experian.

GUS added that at the time of the demerger, it was planning for Experian to issue 10-15% of its share capital as new shares to a combination of existing GUS shareholders and new investors.

A Merrill Lynch research report said that the demerger could create two FTSE companies with a combined market capitalisation of "just under �11bn".