Tate & Lyle, the sweeteners and ingredients giant, is set to become the latest major UK firm to be acquired by foreign owners. US-based competitor Ingredion has agreed to pay £2.7 billion for the historic British company, with the board backing the move to take it into private hands.
Why Is a US Firm Buying Tate & Lyle?
Ingredion stated that the acquisition will expand its geographic reach and diversify its portfolio into areas such as texturants, sugar reduction, and fortification. The company also highlighted potential cost savings of around $130 million (£97.5 million) annually by the end of 2030. Tate & Lyle, founded over 165 years ago, is a historic brand with global reach, making it an attractive target. However, Tate noted that the operating environment for ingredients companies and their customers has deteriorated over the past year.
Why Are UK Firms Being Acquired by International Companies?
Firms often pursue mergers and acquisitions to improve performance through consolidation. International companies may view buying a UK rival as a way to enter the UK market or acquire a desirable brand. For large global firms like Tate & Lyle, it can also enhance efficiency through shared buying power or facility consolidation. UK equity markets, such as the FTSE 100, have grown but lag behind some other countries, like the US. Analysts suggest that international companies, particularly in the US, see UK competitors as undervalued and ripe for acquisition.
What Does the Data Show?
According to the Office for National Statistics (ONS), 163 UK companies were acquired by foreign buyers in the first three months of 2026, representing £14.2 billion in deals. This was significantly higher than the £4.7 billion in deals by UK firms buying foreign businesses. The total was a slowdown from the £33 billion in the previous quarter, which had been a four-year high.
Which Other Big Companies Have Been Snapped Up?
Recent deals include William Hill owner Evoke agreeing to a £243.1 million takeover by Greek firm Bally’s Intralot. Laboratory testing company Intertek’s board backed a £9.4 billion proposal from Swedish firm EQT. FTSE 100 insurer Beazley agreed to an £8.1 billion acquisition by Swiss firm Zurich in March. Asset manager Schroders also agreed to be taken private this year in a £9.9 billion deal with US investment company Nuveen. Last year saw the £3.6 billion takeover of Royal Mail owner International Distribution Services by Daniel Kretinsky’s IP Group.
Are Any Other UK Firms Likely to Be Bought?
Further firms have received offers or face speculation about new ownership. Private hospital operator Spire Healthcare is in talks over a possible £1 billion takeover by its second-largest shareholder, Toscafund Asset Management. London-listed energy group DCC pushed back a £5 billion approach from a consortium including KKR and Energy Capital Partners. Budget airline EasyJet also rejected a takeover approach from Castlelake, calling it “highly opportunistic”.
