Tate & Lyle has become the latest London-listed business to attract takeover interest after confirming it received an approach from US peer Ingredion Incorporated.
Ingredion has proposed a cash offer valuing Tate & Lyle at 595p per share, plus 20p per share in dividends.
The approach highlights continued overseas interest in UK-listed companies, particularly businesses viewed as strategically valuable or attractively priced following prolonged weakness in UK equity valuations.
Investors reacted positively to the news, with Tate & Lyle shares rising sharply as markets assessed the likelihood of a formal bid.
Tate & Lyle said the latest takeover proposal from Ingredion Incorporated follows several earlier approaches, with discussions between the two companies now ongoing.
The indicative proposal is understood to value Tate & Lyle at approximately £2.7 billion, underlining continued international appetite for UK-listed businesses.
Investors reacted strongly to the development, sending Tate & Lyle shares up 44% to around 540p as markets priced in the possibility of a formal bid emerging.
While historically associated with sugar and golden syrup, Tate & Lyle has transformed itself into a specialist food ingredients business focused on higher-margin products including sweeteners, starches and food stabilisers used across beverages, dairy products, soups, bakery items and confectionery.
The company’s shift towards speciality nutrition and ingredient solutions has made it increasingly attractive to larger global food technology and ingredients groups seeking scale and product diversification.
