Tate & Lyle agrees £2.7bn takeover by US rival in new blow to FTSE | Tate and Lyle
Tate & Lyle has agreed to a £2.7bn takeover by US rival Ingredion in a deal that could put hundreds of jobs at risk and represent another loss for London’s struggling stock exchange.
The FTSE 250 business, which makes artificial sweeteners such as Splenda, agreed to a deal worth 615 pence per share – around 60% above its price – before news of a possible takeover emerged.
But the companies said the deal could trigger a “material reduction” in Tate & Lyle’s workforce, representing 3% of the new group’s headcount, or about 475 jobs.
“Such workforce reduction will be implemented with the aim of combining the strengths and capabilities of both businesses,” they said in a joint statement.
Tate & Lyle, one of the oldest listed companies in the UK, has just under 5,000 employees worldwide. There are approximately 200 employees in the UK, most of whom operate from headquarters in London.
Headquartered in Chicago, Illinois, Ingredion has approximately 11,000 employees worldwide.
The takeover comes at a low point for Tate & Lyle’s share price, which had lost more than half its value in just five years before news of the deal.
The company, known for its sugar products, sold its namesake sugar business to American Sugar Refining for £211 million in 2010. It later focused on producing artificial sweeteners and specialty food ingredients and acquired US-based CP Kelco, a leader in specialty gums and pectins, for $1.8 billion in 2024.
However, it has struggled to impress investors in recent years as it reports that consumer demand for its products has been weak despite the increasing use of GLP-1 weight loss drugs.
Ingredion said its new combined group would generate annual revenue of around $9.9bn (£7.4bn) and make adjusted profits of $1.8bn. Shares in Tate & Lyle rose as much as 12% to 552p in early trading.
The takeover also represents another loss for the London stock exchange, which has faced a series of high-profile exits in recent years. Several London-listed companies have agreed to go private this year, including asset manager Schroders, insurer Beazley and laboratory testing company Intertek.
Tate & Lyle chairman David Hearn said the company’s “next chapter with Ingredion will create a business with greater potential, greater scale and increased investment in innovation to support customers.”
“Combining the complementary portfolios of Ingredion and Tate & Lyle creates a global leader in ingredient solutions with the expertise and geographic reach that will help shape the future of food,” said Jim Zallie, Ingredion president and chief executive officer.
