Tate & Lyle, one of Britain’s oldest listed companies, has agreed to a £2.7bn takeover by US rival Ingredion in a deal that could put nearly 500 jobs at risk and deepens the malaise affecting London’s stock market.
The FTSE 250 business, best known for its Splenda artificial sweeteners, accepted an offer of 615p a share — about 60% above its price before news of a possible takeover emerged. Shares jumped 14% to 562p in early afternoon trading.
“Tate & Lyle agrees £2.7bn takeover by US rival Ingredion, putting 475 jobs at risk and deepening London market malaise.”
The deal, however, comes at a heavy cost. In a joint statement, the companies said they expected a “material reduction” in Tate & Lyle’s workforce, representing about 475 jobs — 3% of the combined group’s headcount. “Any such workforce reduction would be implemented with the aim of combining the strengths and capabilities of both businesses,” they said.
Tate & Lyle employs nearly 5,000 people worldwide, with around 200 based in the UK, most at its London headquarters. Ingredion, headquartered in Chicago, has about 11,000 employees globally.
The takeover marks a low point for a company that had lost more than half its share value in five years before the bid emerged. Once synonymous with sugar, Tate & Lyle sold its namesake sugar business to American Sugar Refining for £211m in 2010, pivoting to artificial sweeteners and specialty ingredients. It bought US-based CP Kelco, a leader in speciality gums and pectins, for $1.8bn in 2024.
But investor confidence has waned. The company has reported weak consumer demand for its products, even as the use of GLP-1 weight-loss drugs rises. Ingredion said the combined group would generate annual revenue of about $9.9bn (£7.4bn) and adjusted profits of $1.8bn.
The exit is the latest blow to London’s stock market, which has suffered a series of high-profile departures. Other London-listed companies that have agreed to take-private deals this year include asset manager Schroders, insurer Beazley and laboratory testing company Intertek.