Tate & Lyle, the 150-year-old British food ingredients group, has confirmed it is in advanced discussions with US-based Ingredion over a possible £2.7 billion cash takeover that could remove another major name from the London Stock Exchange and create a transatlantic ingredients business valued at more than $10 billion.
The FTSE 250 company said Ingredion has proposed an offer of 615p per share, made up of 595p in cash and up to 20p in dividends. The bid represents a 64% premium to Tate & Lyle’s previous closing price and triggered a sharp rally in the stock, which surged 45.4% to 545p on Thursday.
Even after the jump, the shares remain below levels seen three years ago, when they traded above 800p. The company confirmed that discussions are ongoing but stressed there is no certainty that a firm offer will be made.
Ingredion, headquartered in Illinois, said it is continuing due diligence and believes a potential deal would benefit customers, employees and shareholders across both companies. Under UK takeover rules, the American firm has until 5pm on 11 June to either formalise an offer or withdraw.
Tate & Lyle’s board said the approach is one of several received from Ingredion in recent months, signalling sustained interest but also ongoing uncertainty about whether a transaction will proceed.
The timing of the proposal comes after a challenging period for Tate & Lyle, with softer demand in US bakery markets, weaker pricing conditions in Europe and elevated input costs weighing on performance. Analysts say the size of the premium places significant pressure on the board to consider the offer seriously.
The potential merger would combine Tate & Lyle’s expertise in low- and no-calorie sweeteners, including ingredients used in diet beverages, with Ingredion’s broader portfolio of starches, plant-based proteins and texturising solutions. Both companies have been expanding in the US market, where demand for reduced-sugar and reformulated food products continues to grow.
Founded in the Victorian era, Tate & Lyle traces its origins to sugar refining businesses established by Henry Tate and Abram Lyle in the 19th century. The company later became known globally for products such as Lyle’s Golden Syrup before gradually transforming into a modern food science business focused on health-oriented ingredients. Its sugar refining operations were sold in 2010, marking a shift away from bulk commodities.
