Tate & Lyle has agreed to a £2.7bn takeover by its US rival Ingredion, in a deal that could put hundreds of jobs at risk and represents yet another loss for London’s struggling stock market.
The FTSE 250 business, which makes artificial sweeteners such as Splenda, has agreed to a deal that values it at 615p a share, about 60% above its price before news of a possible takeover emerged. However, the companies said the deal could trigger a “material reduction” in Tate & Lyle’s workforce, representing 3%, or about 475 jobs, of the new group’s headcount.
Tate & Lyle, one of the oldest listed companies in the UK, employs just under 5,000 people worldwide, with about 200 in the UK, mostly at its London headquarters. Ingredion, headquartered in Chicago, employs about 11,000 people globally.
The takeover comes at a low point for Tate & Lyle’s share price, which had lost more than half its value in five years. The company, best known for its sugar products, sold its namesake sugar business in 2010 and focused on artificial sweeteners and speciality ingredients, buying CP Kelco in 2024. However, it has struggled with weak consumer demand despite rising use of weight-loss drugs.
Ingredion said the combined group would generate annual revenue of about $9.9bn (£7.4bn) and adjusted profits of $1.8bn. Shares in Tate & Lyle were up 14% at 562p in early afternoon trading. The takeover is yet another loss for London’s stock market, which has seen several high-profile exits this year.
