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(Alliance News) - Food and beverage ingredients maker Tate & Lyle PLC on Thursday said it has agreed to buy a Chinese prebiotic dietary fibre business for USD237 million.
The firm, Quantum Hi-Tech (Guangdong) Biological Co Ltd, engages in the research, development, production and sale of fructo-oligosaccharides and galacto-oligosaccharides. Together, these represent around 25% of the global dietary fibres market - a "fast-growing" market Tate & Lyle believes the deal will strengthen its hand in.
"The acquisition expands Tate & Lyle's ability to provide added-fibre solutions for its customers across a range of categories including dairy, beverages, bakery and nutrition (including infant nutrition), and to meet growing consumer interest in gut health. It also significantly expands Tate & Lyle's presence in China and Asia," the firm said.
The transaction is subject to approval by the shareholders of the vendor, ChemPartner Pharmatech Co Ltd, and is expected to complete in the second quarter of 2022.
Shares in Tate & Lyle were up 2.9% at 740.20 pence in London on Thursday morning.
By Lucy Heming; lucyheming@alliancenews.com
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