Tate & Lyle Agrees to £2.7 Billion Takeover by U.S. Rival

Tate & Lyle has agreed to a £2.7 billion takeover by its U.S. rival Ingredion. The transaction values the company at 615p per share, about 60 percent above its price before news of a possible deal emerged.

The companies stated the deal could trigger a material reduction in Tate & Lyle’s workforce, representing 3 percent or about 475 jobs of the new group’s headcount. Any workforce reduction would be implemented with the aim of combining the strengths and capabilities of both businesses, according to a joint statement.

Tate & Lyle employs just under 5,000 people worldwide, with about 200 based in the UK at its London headquarters. Ingredion employs about 11,000 people globally.

& Lyle sold its namesake sugar business in 2010 and later acquired CP Kelco for $1.8 billion in 2024. The company has reported weak consumer demand for its products in recent years. Ingredion said the combined group would generate annual revenue of about $9.9 billion and adjusted profits of $1.8 billion. Shares in Tate & Lyle rose by as much as 12 percent to 552p in early trading.

Lyle chair said the next chapter with Ingredion will create a business with even greater potential, greater scale, and increased investment in innovation in support of customers. Jim Zallie, the chair and chief executive of Ingredion, said combining the companies creates a global leader in ingredient solutions with the expertise and geographic reach to help shape the future of food.