Overview
- Tate & Lyle said it is in talks with US rival Ingredion over a cash proposal that values the company at about £2.7 billion and cautioned there is no certainty of a firm bid.
- Under UK Takeover Panel rules, Ingredion must decide by 5pm on June 11 whether to make a binding offer or walk away.
- The disclosure sent Tate & Lyle shares up more than 50% in afternoon trading as investors priced in the possibility of a deal.
- The interest follows a tough year for Tate & Lyle, which warned on profits and completed a roughly £1.4 billion purchase of CP Kelco to refocus its ingredients business.
- The approach fits a broader run of foreign bids for UK groups, with Intertek recently backing a £9.4 billion offer from Sweden’s EQT.