Ingredion offers US$3.7B to acquire Tate & Lyle in major global food ingredients deal 

UK – Ingredion Incorporated has offered to acquire rival ingredient solutions provider Tate & Lyle PLC in a proposed £2.74 billion (US$3.71 billion) deal that could reshape the global specialty ingredients market. 

Both companies confirmed that discussions are ongoing following Ingredion’s proposal to purchase Tate & Lyle for 595 pence per share in cash, alongside up to 20 pence in dividends.  

The combined offer values Tate & Lyle shares at 615 pence each, representing a 64% premium to the company’s May 13 closing share price of 374.80 pence. 

In a filing submitted to the US Securities and Exchange Commission on May 14, Ingredion said it is continuing discussions and due diligence with Tate & Lyle regarding the proposed acquisition. 

“Ingredion is engaged in discussions and a period of due diligence with Tate & Lyle to further explore a potential transaction,” the company said in its statement. “Discussions are ongoing, and there can be no certainty that a binding offer will be made.” 

Under UK takeover regulations, Ingredion must either make a formal offer for Tate & Lyle or withdraw its interest by June 11, unless the deadline is extended by regulators. 

Tate & Lyle confirmed that the proposal followed several earlier approaches from Ingredion regarding a potential acquisition. 

“The board and Ingredion are in discussions regarding the proposal,” Tate & Lyle said in a statement. “There can be no certainty that any offer will be made, nor as to the final terms on which any offer might be made.” 

The proposed acquisition would combine two major players in the global food and beverage ingredients sector. Ingredion reported sales of US$7.22 billion for the financial year ended December 31, 2025, while Tate & Lyle projected revenue of approximately £2.12 billion (US$2.86 billion) for the year ending March 2025. 

Ingredion said it believes the transaction would create value across customers, shareholders and employees while strengthening capabilities in specialty ingredients and food innovation. 

“Ingredion believes a potential transaction would deliver significant benefits to customers, consumers, employees and Ingredion shareholders,” the company stated. 

Tate & Lyle, which has more than 165 years of ingredient innovation experience, has increasingly focused on health-focused food and beverage solutions. Its 2024 acquisition of CP Kelco for approximately £1.4 billion strengthened its position in pectin and specialty gum solutions used in texture and mouthfeel applications. 

Under the dividend component of the proposal, Tate & Lyle shareholders would receive a final fiscal 2026 dividend of up to 13 pence per share, together with an interim dividend of up to 7 pence per share for the six months ending September 30. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.