LONDON, June 8, 2026, 09:19 BST
- Tate & Lyle has accepted a takeover offer from U.S.-based Ingredion, valuing the deal at as much as 615p a share including dividends.
- Shares gained around 12% in early London trade, though they stayed under the full offer price.
- The deal still needs sign-off from shareholders, court approval, and a green light from antitrust regulators. If it gets those, it is set to close in the second half of 2027.
Tate & Lyle PLC shares rose Monday after the UK food ingredients group said it will be bought by U.S.-based Ingredion in a cash deal worth about £2.7 billion, or £3.8 billion with debt. The planned deal would remove another long-standing British name from the London market.
Tate & Lyle’s shares had jumped in May after talks came out, so timing counts here. Monday’s binding agreement means investors see hard terms now. The deal showed up during a soft London session, helping the stock stand out as a deal mover.
Tate & Lyle shares jumped 12.5% to 553p by 09:03 BST, according to Google Finance. On AJ Bell’s delayed quote, the spread was at 551p/552p versus the last close at 491.40p. Over 4.7 million shares traded right before 09:00.
That moved against the FTSE 250, the UK’s mid-cap share index, which Hargreaves Lansdown had off 0.31% at 22,990.14. A stock market index is simply a group of shares that acts as a benchmark for a part of the market.
Tate & Lyle shareholders are set to get 595p cash per share, along with a final dividend up to 13.2p and an interim dividend up to 6.8p. That takes the total to as much as 615p a share, with the companies calling it a 64% premium to the closing price before the offer period started in May.
Tate & Lyle is still trading at a discount. Shares sat near 552p, which is about 10% under the full 615p possible value. That shows traders are pricing in some risk, waiting for the deal to close and for approvals.
Ingredion is a direct competitor rather than a financial buyer. The two companies said combining would give Ingredion a wider platform in texturants, sugar-reduction systems and fibre fortification. Texturants are ingredients used to alter the feel, structure or thickness of food and beverages.
Tate & Lyle Chairman David Hearn called the deal a way to get “greater scale” and boost “investment in innovation.” Ingredion CEO Jim Zallie said their “complementary portfolios” mean the combined group would be a “global leader in ingredient solutions.”
The companies said they expect $130 million in yearly cost savings, or synergies, by the end of 2030. Synergies are the savings or gains from merging operations. They added the deal is set to boost adjusted earnings per share by over 15% in the first full fiscal year after the deal closes.
Tate & Lyle has been moving to focus more on speciality ingredients for higher growth. In the deal announcement, the company said FY2026 revenue dropped 3% and pro forma adjusted EBITDA, which strips out interest, tax, depreciation and amortisation, also fell 3%. The company blamed weaker demand and tougher consumer conditions.
The deal isn’t done yet. Structured as a UK scheme of arrangement, it still needs shareholder approval, a court nod and antitrust sign-off. Ingredion said if regulators demand remedies that hit the combined group hard, like some sales, it plans to ask the UK Takeover Panel for permission to walk away.
Ingredion says if the deal goes through, it will move to cancel Tate & Lyle’s London listing and make the company private. Reuters said the deal would close the book on Tate & Lyle’s 87 years on the London Stock Exchange. It would be another foreign bid for a UK firm.
The company said it plans to send the scheme document to shareholders in the next 28 days. The deal could close in the second half of 2027, depending on conditions. The market is pricing in that the bid is serious, but it isn’t closed yet.
