Ingredion to buy UK's Tate & Lyle for $3.6 billion
Major Acquisition in the Food Ingredients Sector
Deal Overview and Financial Details
June 8 (Reuters) - U.S. group Ingredion has struck a deal to buy Britain's Tate & Lyle for £2.7 billion ($3.6 billion) in cash to create a leading speciality food and beverage ingredients company.
The deal underscores how food companies are reshaping portfolios to tap demand for lower-sugar, higher-protein and functional products with added health and nutrition benefits, even as weak consumer sentiment weighs on near-term growth.
Shareholder Benefits and Market Impact
Tate & Lyle shareholders will receive 595 pence per share in cash, a premium of nearly 59% to the last closing before talks were disclosed in mid-May, plus 20 pence in dividends. The deal values the British group at £3.8 billion including debt.
Tate & Lyle shares, up more than 30% since the talks became public, were up 12.7% to 554 pence at 0811 GMT. The deal will end Tate & Lyle's 87-year listing in London, marking another loss of a household name for the UK market.
Foreign Investment Trends in the UK
A wave of foreign bids has put Britain on track for a record year for dealmaking in 2026, with buyers attracted in part by comparatively cheap UK valuations.
Company Backgrounds and Strategic Rationale
Tate & Lyle’s Evolution
FLAVOURS AND HEALTH
Tate & Lyle, which started as a sugar refinery in the 1850s, sold its eponymous sugar brand in 2010 to ASR Inc. to focus on sweeteners such as the zero-calorie Splenda brand used by Coca-Cola. Its 2024 acquisition of CP Kelco expanded it into plant-based ingredients.
Combined Business Focus
Combined with Ingredion, the business will be worth about $9.9 billion and focus on ingredients that improve texture, cut sugar and boost nutrients, as food makers target demand for flavour and fibre, including amid the rise of GLP-1 weight-loss drugs.
Ingredion’s Product Portfolio
Ingredion makes sweeteners and starches, as well as ingredients used in paper, cosmetics and pharmaceuticals.
Recent Acquisition Interest
In 2024, private equity firm Advent International was reported to be preparing a takeover bid for Tate & Lyle, but no offer materialised.
Additional Information
($1 = 0.7504 pounds)
(Reporting by Prerna Bedi in Bengaluru. Editing by Louise Heavens and Mark Potter)
