Tate & Lyle in £2.7bn takeover talks with US suitor

Tate & Lyle has revealed takeover talks with a US rival implicit a imaginable £2.7bn combination.

The London-listed sweetener and ingredients shaper said connected Thursday that it had received an all-cash attack from Illinois-based Ingredion.

The companies are present successful progressive discussions astir a imaginable connection worthy 615p per share.

Shares successful Tate & Lyle soared by implicit 47pc successful day trading connected Thursday to 550p.

The takeover tilt comes aft a play of weakness for Tate & Lyle’s shares implicit the past year. The institution issued a informing implicit its full-year profits past October and revealed a 10pc driblet successful first-half profits successful November.

The attack represents the latest successful a bid of US deals for UK companies. Unilever sold its spreads division, including Marmite, to Baltimore-based spice and condiment shaper McCormick successful a £50bn woody earlier this year. Meanwhile, UK plus manager Schroders volition merchantability itself to US rival Nuveen for astir £10bn.

While champion known for sweetener products, 165-year-old Tate & Lyle sold its sweetener part – including the Golden Syrup mill successful Plaistow, eastbound London – to American Sugar Refining for £211m successful 2010.

The woody allowed the US steadfast to proceed utilizing the marque connected its sweetener products but near Tate & Lyle focused connected sweeteners and its concern nutrient ingredients division.

Tate & Lyle had been trying to presumption itself to payment from the emergence of GLP-1 weight-loss drugs specified arsenic Ozempic and Wegovy.

The institution published probe earlier this twelvemonth into however appetite-suppressing medicines were changing user eating habits, with foodmakers progressively focused connected low-sugar and high-protein products.

Bosses person argued that request for healthier and much nutritious nutrient and portion products would enactment semipermanent growth.

Tate & Lyle, which is listed connected the FTSE 250, bought nutrient and portion ingredients concern CP Kelco successful a woody worthy astir £1.4bn past year.

The acquisition was aimed astatine strengthening Tate & Lyle’s portfolio of texture and mouthfeel ingredients, which are utilized successful reduced-sugar and reduced-fat foods.

Ingredion, Tate & Lyle’s US suitor, employs much than 12,000 radical worldwide. It makes sweeteners, starches, nutritional ingredients and biomaterials that are utilized successful nutrient and drinks, arsenic good arsenic insubstantial and pharmaceuticals.

It has besides faced unit from weaker lawsuit request successful caller months, amid a broader slowdown successful the nutrient ingredients sector.

The institution traces its roots backmost much than 100 years and has grown by a bid of acquisitions successful the US and overseas.

Ingredion has until 5pm connected June 11 to marque a steadfast connection oregon locomotion distant nether Takeover Panel rules. Tate & Lyle stressed determination was nary certainty an connection would beryllium made.

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