Ingredion to buy Tate & Lyle for £2.7 billion

Ingredion Inc. has agreed to acquire UK-based Tate & Lyle Plc in an all-cash deal valued at £2.7 billion. Under the terms of the recommended offer, the US ingredients group will buy all outstanding shares of Tate & Lyle, combining the two businesses into a larger global speciality food-ingredients company.

The proposed acquisition values Tate & Lyle’s equity at £2.7 billion and implies an enterprise value of about £3.7 billion to £3.8 billion when including debt. Reports describe the transaction as creating a sizeable player in speciality ingredients with a broadened international footprint.

Tate & Lyle shareholders are set to receive 595 pence per share in cash. In addition, they may be entitled to up to 20 pence per share in dividends, bringing the total implied value to 615 pence per share if the maximum dividend is paid.

On this basis, the offer represents an enterprise valuation of approximately £3.8 billion for Tate & Lyle, according to figures cited across multiple reports. The near-term market reaction included a notable rise in Tate & Lyle’s share price following the announcement.

Tate & Lyle’s board has said it will unanimously recommend that shareholders vote in favour of the transaction. The deal is structured as a recommended takeover, meaning it depends on shareholder approval and customary conditions.

Completion of the acquisition is expected in the second half of 2027. Once finalised, the transaction will end Tate & Lyle’s 87-year listing on the London Stock Exchange, marking a significant change for the long-standing British ingredients group.

The companies present the deal as forming a larger, global speciality food-ingredients group. Tate & Lyle has recently repositioned its business towards sugar-reduction, texturants and fortified solutions, areas that are expected to complement Ingredion’s existing portfolio.

Ingredion and Tate & Lyle project cost and revenue synergies of $130 million to be realised by the end of 2030. They also forecast at least a 15% rise in earnings for the combined business effective from the first year after completion.

The takeover adds to a series of transactions affecting London-listed companies, with Tate & Lyle’s agreed sale to a US rival drawing attention to the future composition of the UK equity market. Headlines from financial media have highlighted the deal size and the removal of another established British company from the London Stock Exchange.

For investors in Tate & Lyle, the recommended cash offer and potential dividend component provide a defined exit valuation, subject to the deal closing as planned in the second half of 2027. For Ingredion, the acquisition represents a sizeable expansion in speciality ingredients with defined synergy and earnings targets.