Shares in Tate & Lyle surged more than 50 per cent in afternoon trading on Thursday after the London-listed sweetener and ingredients group confirmed it is in talks over a potential £2.7 billion takeover by US rival Ingredion Incorporated.
Takeover bid details
Illinois-based Ingredion has tabled a proposal valuing each Tate & Lyle share at 615p, composed of 595p in cash and the right to receive future dividends. The approach follows a series of earlier, undisclosed proposals from the American ingredient solutions provider. Under UK Takeover Panel rules, Ingredion has until 5pm on June 11 to announce a firm intention to make an offer or to walk away.
The £2.7 billion valuation represents a significant premium to Tate & Lyle’s recent share price, which has traded in a 52-week range of roughly 319p to 610p. The offer price of 615p stands at the top end of that range and well above the level at which the stock had been languishing before the news broke. For shareholders, the all-cash element provides immediate liquidity, while the dividend entitlement sweetens the deal for those holding shares through the completion period.
The bid underscores Ingredion’s appetite for expansion in the speciality food ingredients market. The US company, which reported net sales of approximately $7.4 billion in 2024 and a market capitalisation of $7.17 billion as of February 2026, has a track record of strategic acquisitions, including the purchase of stevia supplier PureCircle in 2020, texture specialist KaTech in 2021, and Indian ingredients firm Amishi Drugs & Chemicals in 2022. Ingredion recently reorganised its operations into two segments – Texture & Healthful Solutions and Food & Industrial Ingredients – to sharpen its focus on specialised product capabilities.
Company response
Tate & Lyle confirmed it is in discussions with Ingredion but stressed that there is no certainty an offer will be made. The board is understood to be evaluating the proposal against the backdrop of the company’s recent strategic transformation into a growth-oriented speciality food and beverage solutions business, centred on sweeteners, mouthfeel and fortification.
That transformation has been accelerated by last year’s acquisition of CP Kelco, a producer of pectin and other biopolymers, in a deal worth around £1.4 billion. Announced in June 2024 and completed in November, the purchase was financed by $1.15 billion in cash and the issuance of 75 million new Tate & Lyle shares to CP Kelco’s former parent, J.M. Huber Corporation. Huber now holds a 16 per cent stake in the combined group. The acquisition was intended to bolster Tate & Lyle’s position in plant-based ingredients and has already delivered cost synergies ahead of plan, according to the company’s most recent financial update.
Market context
The takeover approach comes after a difficult period for Tate & Lyle’s share price, which has been under pressure for the past year. The company warned over full-year profits last October and reported a 10 per cent drop in first-half profits in November. More recently, in the first half of fiscal 2026, Tate & Lyle posted a 3 per cent decline in revenue and a 6 per cent fall in EBITDA on a constant-currency and pro forma basis, though the group said integration of CP Kelco was ahead of schedule.
Analysts have had mixed views on the stock, with Morningstar considering Tate & Lyle shares to be substantially undervalued, while average target prices suggest some upside. The offer from Ingredion arrives as overseas suitors step up their pursuit of British companies, attracted by relatively cheap valuations and a weak pound. UK takeover data shows that overseas bidders accounted for 81 per cent of aggregate deal value for firm offers in 2025, with US firms and private equity houses particularly active. The trend has prompted broader debate about domestic control and national security implications. Earlier this week, laboratory testing company Intertek gave its backing to a £9.4 billion takeover proposal from Swedish private equity firm EQT.
