The sweetener and ingredients manufacturer Tate & Lyle has disclosed that it is in discussions regarding a potential £2.7 billion acquisition by its American competitor, Ingredion Incorporated. This development marks the latest in a series of takeovers targeting British companies by overseas entities.
The London-listed firm confirmed that it had received an approach from Ingredion, headquartered in Illinois, valuing the company at 615 pence per share in cash. This follows several earlier proposals from the US-based corporation.
Both parties are currently engaged in talks, though Tate & Lyle has emphasised that there is no certainty that a formal offer will ultimately be made. Under the rules set by the Takeover Panel, Ingredion has until 5:00 PM on 11 June to either announce a firm intention to make an offer or withdraw from the process.
The news arrives amidst a wave of approaches for British firms by foreign suitors. Earlier this week, laboratory testing company Intertek endorsed a £9.4 billion proposal from the Swedish firm EQT.
Shares in Tate & Lyle surged by more than 50% during afternoon trading on Thursday in response to the announcement. However, this takeover interest comes after the company's share price had faced downward pressure over the preceding year. In October, Tate & Lyle issued a warning regarding its full-year profits, and in November, it disclosed a 10% decline in first-half profits.
Last year, Tate & Lyle completed the acquisition of CP Kelco, a food and drink ingredients business, in a transaction valued at approximately £1.4 billion.
