U.S.-based Ingredion is negotiating the acquisition of British rival Tate & Lyle for approximately $3.7 billion (£2.74 billion). The proposed offer of 615 pence per share represents a 64% premium over the previous closing price. Tate & Lyle shares surged 55% following the announcement. Ingredion shares fell 2.8% on the news.
The merger would create a food ingredients giant with a combined valuation exceeding $10 billion. This move targets increasing consumer demand for healthy, low-calorie, and plant-based food options. Both companies seek to offset recent headwinds, including Tate & Lyle’s declining revenue in the weak U.S. bakery market.
The deal would integrate Tate & Lyle’s sweetener and texturant expertise with Ingredion’s portfolio of starches and nutritional ingredients. Tate & Lyle currently supplies major global brands such as Coca-Cola. The combined entity aims for significant operational synergies and a stronger global market position.