Tate & Lyle shares soar on £2.7bn takeover bid
Ingredients giant Tate & Lyle soared almost 50 per cent after it received a £2.7bn takeover bid from an American food firm.
The FTSE 250 firm saw its shares jump by 45 per cent on Thursday, to 543p, after its board said it is discussing the proposal from US company Ingredion.
The bid stands at 615p per share, valuing Tate & Lyle at £2.7bn.
Tate & Lyle, which supplies food and drink products to markets across the world, said it is discussing the bid with its US rival.
Shares up nearly 50 per cent
The firm said: “The proposal follows a number of earlier approaches from Ingredion to the Board regarding a possible offer for Tate & Lyle. The board and Ingredion are in discussions regarding the proposal.
“There can be no certainty that any offer will be made, nor as to the final terms on which any offer might be made. A further announcement will be made when appropriate.”
Tate & Lyle was created in 1921, after the sons of rival sugar refiners Henry Tate and Adram Lyle merged their fathers’ firms following their deaths. It has been listed in London since 1938.
In 2010, Tate & Lyle sold its sugar refining business and the rights to its golden syrup brand name to American Sugar Refining for £211m.
In 2024, the firm spent $1.8bn (£1.4bn) on pectin and gum business CP Kelco, in a bid to position itself as a “leader in mouthfeel [and] a critical driver of customer solutions”.
US rival mounts bid
Illinois-based Ingredion provides starches, sweeteners and pea protein to the food, beverage, brewing and pharmaceutical industries.
The firm is listed on the New York Stock Exchange and its share price fell by two per cent on the US market open to $103, leaving the stock down five per cent in the year to date.
Ingredion has until 5pm on 11 June to make a firm bid or walk away from its approach, according to regulatory rules.
This takeover bid is the latest in a string of approaches to London-listed firms.
Earlier this week, FTSE 100 testing company Intertek said it was “minded” to accept a private takeover and FTSE 250-listed Spire Healthcare’s shares jumped following a £1bn bid.