Ingredion offers US$3.7B to acquire Tate & Lyle in major global food ingredients deal
Ingredion has proposed a £2.74 billion takeover of Tate & Lyle, aiming to expand its global food ingredient solutions and specialty product portfolio.
UK – Ingredion Incorporated has offered to acquire rival ingredient solutions provider Tate & Lyle PLC in a proposed £2.74 billion (US$3.71 billion) deal that could reshape the global specialty ingredients market.
Both companies confirmed that discussions are ongoing following Ingredion’s proposal to purchase Tate & Lyle for 595 pence per share in cash, alongside up to 20 pence in dividends.
The combined offer values Tate & Lyle shares at 615 pence each, representing a 64% premium to the company’s May 13 closing share price of 374.80 pence.
In a filing submitted to the US Securities and Exchange Commission on May 14, Ingredion said it is continuing discussions and due diligence with Tate & Lyle regarding the proposed acquisition.
Under UK takeover regulations, Ingredion must either make a formal offer for Tate & Lyle or withdraw its interest by June 11, unless regulators extend the deadline.
Tate & Lyle confirmed that the proposal followed several earlier approaches from Ingredion regarding a potential acquisition.
The proposed acquisition would combine two major players in the global food and beverage ingredients sector. Ingredion reported sales of US$7.22 billion for the financial year ended December 31, 2025, while Tate & Lyle projected revenue of approximately £2.12 billion (US$2.86 billion) for the year ending March 2025.
Ingredion said it believes the transaction would create value across customers, shareholders and employees while strengthening capabilities in specialty ingredients and food innovation.
Tate & Lyle, which has more than 165 years of ingredient innovation experience, has increasingly focused on health-focused food and beverage solutions. Its 2024 acquisition of CP Kelco for approximately £1.4 billion strengthened its position in pectin and specialty gum solutions used in texture and mouthfeel applications.
Under the dividend component of the proposal, Tate & Lyle shareholders would receive a final fiscal 2026 dividend of up to 13 pence per share, together with an interim dividend of up to 7 pence per share for the six months ending September 30.
Tate & Lyle expands sweetener partnership with BioHarvest
ISRAEL/CANADA – In parallel with the takeover discussions, Tate & Lyle has expanded its collaboration with BioHarvest Sciences, broadening a joint development programme to include multiple plant‑based sweetener molecules produced via BioHarvest’s Botanical Synthesis™ platform.
The enlarged partnership aims to deliver a flexible toolkit of non‑GMO.
These plant‑derived sweetening solutions can be tailored to different food and beverage categories to support sugar‑reduction goals while meeting taste, cost and labelling requirements.
Tate & Lyle framed the move as a way to accelerate next‑generation sweetener innovation and diversify its pipeline beyond single‑molecule approaches.
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