Tate & Lyle mulls takeover approach from US peer Ingredion

(Alliance News) - Tate & Lyle PLC on Thursday confirmed a takeover approach from Ingredion Inc.

In response to "press speculation", the London-based food and beverage ingredient provider, known for sugar and golden syrup, said it had received a conditional offer valuing the company at a maximum of 615 pence per share, or GBP2.74 billion in total, based on Tate & Lyle's 445.4 million shares in issue.

This comprises 595p in cash, which implies a total valuation of GBP2.65 billion.

Alongside the cash, shareholders will have the right to receive a final dividend for the year ended March 31 amounting to 13p per share, as well as an interim dividend for the six months ending in September of 7p per share, subject to board and shareholder approval.

Tate & Lyle shares surged 44% to 540.00p on Thursday afternoon in London, giving it a market capitalisation of about GBP2.40 billion.

The company noted that the offer "follows a number of earlier approaches from Ingredion to the board", and that it is currently in discussions regarding the proposal, but stressed there is no certainty a firm offer will be made.

Ingredion is a Westchester, Illinois-based food and beverage ingredient supplier focused on starches and sweeteners.

It has until June 11 to declare a firm intention to make an offer.

The potential takeover comes after Tate & Lyle posted "muted" third-quarter results. Revenue in the nine months to December 31 rose 29% on a reported basis to GBP1.51 billion, but pro-forma revenue at constant exchange rates declined by 3%.

The pro-forma calculation assumes the CP Kelco deal, concluded in November 2024, was included for the entire comparative period. Tate & Lyle bought CP Kelco from JM Huber Corp for USD1.8 billion.

For financial 2026, Tate & Lyle guided a low single-digit percentage decline in both revenue and earnings before interest, tax, depreciation and amortisation.

In financial 2025, pro-forma revenue was GBP2.12 billion, and Ebitda was GBP446 million.

By Holly Munks, Alliance News reporter

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