Ingredion in talks to buy Tate & Lyle

WESTCHESTER, Ill. — Ingredion Inc. has made an offer to acquire rival food and beverage ingredient solution provider Tate & Lyle PLC for £2.74 billion ($3.71 billion).

In statements on May 14, both companies confirmed the proposed deal and said talks are underway. Westchester, Ill.-based Ingredion said it has offered 595 pence per share in cash plus up to 20 pence in dividends for London-based Tate & Lyle, for a total value of 615 pence, which would mark a 64% premium to Tate & Lyle’s May 13 closing share price of 374.80 pence.

“Ingredion is engaged in discussions and a period of due diligence with Tate & Lyle to further explore a potential transaction,” Ingredion said in a statement included in a May 14 filing on the proposal with the Securities and Exchange Commission. “Discussions are ongoing, and there can be no certainty that a binding offer will be made.”

UK takeover and merger regulations require Ingredion to make a formal acquisition offer to Tate & Lyle or signal its intention to walk away by June 11, although that deadline can be extended.

Ingredion’s offer “follows a number of earlier approaches from Ingredion to the board regarding a possible offer for Tate & Lyle,” Tate & Lyle said in its statement.

“The board and Ingredion are in discussions regarding the proposal,” Tate & Lyle said. “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.”

Ingredion posted sales of $7.22 billion for its 2025 fiscal year ended Dec. 31, 2025, compared with total revenue of £2.12 billion in fiscal 2025 ended March 31, 2025, for Tate & Lyle, which is slated to report fiscal 2026 full-year results on May 21.

“Ingredion believes a potential transaction would deliver significant benefits to customers, consumers, employees and Ingredion shareholders,” Ingredion said in its filing.

Under the dividend portion of Ingredion’s proposed offer, Tate & Lyle would pay two ordinary-course dividends as a final fiscal 2026 dividend of up to 13 pence per Tate & Lyle share, along with an interim dividend for the six months ended Sept. 30 of up to 7 pence per Tate & Lyle share.