Sweetener and ingredients giant Tate & Lyle is to be acquired by its US rival, Ingredion Incorporated, in a deal worth approximately £2.7 billion.
This marks the latest takeover of a UK company.
Illinois-based Ingredion will pay up to 615p per share for the London-listed firm, comprising 595p in cash and additional dividend payments.
The agreement values Tate & Lyle at £2.7 billion, or £3.7 billion including debts, and follows several prior proposals from Ingredion.
Tate’s shares have been under pressure over the past year, with the firm warning over full-year profits last October and revealing a 10 per cent drop in first half profits in November.
“Looking forward, we believe the next chapter with Ingredion will create a business with even greater potential, greater scale, and increased investment in innovation in support of customers,” David Hearn, the chair of Tate & Lyle, said.
“The board of Tate & Lyle believes Ingredion’s offer represents an attractive opportunity for shareholders to crystallise value in cash, and that it will be an excellent steward of Tate & Lyle.”
