Ingredion Swoops for Tate & Lyle in £2.7bn Takeover Bid, Sending Shares Surging

Shares in Tate & Lyle (LON: TATE) have jumped sharply this morning after the speciality food ingredients group confirmed it has agreed to a recommended cash acquisition by US rival Ingredion Incorporated in a deal valuing the business at approximately £2.7 billion, or £3.7 billion on an enterprise value basis.

TATE shares opened at 570p and were last trading around 552.5p — a gain of over 12% on Friday’s close of 491.4p — as investors reacted positively to the all-cash offer. The stock had been trading at just 374.8p as recently as 13 May, its “undisturbed” price ahead of the offer period, meaning today’s levels represent a remarkable recovery.

Under the terms of the deal, Tate & Lyle shareholders will receive 595 pence per share in cash, plus permitted dividends of up to 20 pence per share, bringing the total headline offer value to up to 615 pence per share. That represents a premium of approximately 64% to the undisturbed closing price and around 70.8% to the three-month volume-weighted average price ahead of the offer period.

The Tate & Lyle board, advised by Goldman Sachs and Greenhill, has unanimously recommended the deal, citing the attractive premium and the inherent near-term uncertainty facing the business. The company reported a 3% revenue decline for the year ended 31 March 2026, citing softening consumer demand and a challenging macroeconomic backdrop.

Ingredion, itself a major global ingredients group, says the combination will create a scaled speciality ingredients platform with combined revenues of approximately $9.9 billion and projected run-rate cost synergies of around $130 million by end of 2030.

The scheme is expected to become effective during the second half of 2027, subject to regulatory approvals and shareholder votes.