Tate & Lyle (LON: TATE) has received a takeover offer from US-based Ingredion Inc., raising the prospect of another famous brand leaving London’s stock market. Ingredion has made a conditional proposal worth up to 615 pence a share, representing a 64% premium to Tate & Lyle’s closing price on Wednesday.
The indicative proposal values the company at approximately £2.7 billion. Under the proposal, shareholders would receive 595 pence per share in cash plus the right to receive a final dividend of up to 13 pence per share for the financial year ended March 31, 2026, and an interim dividend of up to 7 pence per share for the six months to September 30, 2026.
The company confirmed the proposal follows recent press speculation and a number of earlier approaches from Ingredion regarding a possible offer. Tate & Lyle stock surged 46.88% to 550.5 pence during the trading session following the announcement.
The sharp rally shows investor confidence in the strength of the indicative proposal and expectations of a formal offer materialising. However, the company stressed there can be no certainty that any offer will be made, nor as to the final terms on which any offer might be made.
Under UK takeover rules, Ingredion has until 5pm BST on 11 June to make a firm offer or walk away. The board and Ingredion are currently in discussions, with further announcements to be made when appropriate.
Tate & Lyle produces a range of ingredients used in everything from baked goods to animal feed, operating across 38 countries with over 5,000 employees.
The approach highlights continued overseas interest in UK-listed companies, particularly businesses viewed as strategically valuable or attractively priced following prolonged weakness in UK equity valuations.
Ingredion posted record full-year reported earnings per share of $11.18 in 2024, up from $9.71 in 2023, despite a 3 per cent decline in net sales to $7.2 billion as its texture and clean label portfolio outperformed a struggling North American sweetener business hit by production setbacks and weakening beverage demand.