Ingredion in talks to buy UK's Tate & Lyle for $3.6 billion, Bloomberg News reports
Ingredion's Potential Acquisition of Tate & Lyle
Deal Overview and Valuation
June 7 (Reuters) - U.S. food ingredients maker Ingredion is in advanced talks to acquire Britain's Tate & Lyle in a deal valued at £2.7 billion ($3.6 billion), Bloomberg News reported on Sunday.
Ingredion aims to announce a deal as soon as Monday, the report said, citing people familiar with the matter.
Illinois-headquartered Ingredion is set to unveil a firm offer valued at 615 pence per share, Bloomberg said.
Reactions and Comments
Company Responses
Reuters could not immediately verify the report. Tate & Lyle declined to comment, while Ingredion did not immediately respond to a request for comment.
Details of the Offer
Tate & Lyle said in May that Ingredion was in talks over a possible takeover valuing the London-listed firm at 615 pence per share, comprising 595 pence in cash and up to 20 pence in dividends.
The price represents a premium of around 25% to Tate & Lyle's closing price on Friday.
Industry Impact and Market Context
Potential Market Implications
A deal between Tate & Lyle, known for its artificial sweeteners used in Coca-Cola drinks, and Ingredion could create a food and beverage ingredients giant worth more than $10 billion, at a time when consumers are increasingly opting for low-calorie drinks and diets.
Currency Exchange Rate
($1 = 0.7497 pounds)
Reporting Credits
(Reporting by Chandni Shah in Bengaluru; Editing by Edmund Klamann and Mark Potter)
