US-based Ingredion in talks to buy UK's Tate & Lyle for $3.7 billion

Thu, 14th May 2026 15:26

May 14 (Reuters) - U.S. ⁠food ingredients maker Ingredion is in talks with British rival Tate & Lyle over a possible takeover of the London-listed firm in a 2.74 billion pound ($3.7 billion) ‌deal, the British company said on Thursday, sending its shares 55% higher.

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.

Under the proposal, Tate & Lyle said its shareholders would receive up to 615 ‌pence per share - comprising 595 pence in cash and up to 20 pence in dividends - a 64% premium to its closing price on May 13.

Ingredion did not immediately respond to a Reuters request for comment.

Tate & Lyle has been grappling with a fall in revenue and profit due to soft U.S. bakery demand, lower European pricing and higher ‌costs. Both companies, which trace their roots to the 19th century, see the U.S. as a key market for their beverage, confectionery ‌and packaged food sweetening products.

The British company said the proposal followed "a number of earlier approaches" from Ingredion, though there is no certainty a firm offer will be made.

Shares in Tate & Lyle rose to as much as 580 pence apiece, their highest level in nearly a year.

Ingredion ‌must announce a firm intention to make an offer by June 11 or walk away, under UK takeover rules.

In 2024, private equity firm Advent International was reportedly preparing a ⁠takeover offer ⁠for Tate & Lyle, but no bid materialised.

Tate & Lyle's shares have ‌underperformed Ingredion and the broader London midcaps index over the past year.

Tate & Lyle sold its sugar business to American Sugar Refining in 2010, ending its long association with refined sugar production, but ‌it licensed the “Tate & Lyle Sugar” name to ASR to ensure the familiar brand remained on supermarket shelves.