Breaking news: Ingredion and Tate & Lyle in talks over potential takeover

Tate & Lyle has today confirmed that it is in discussions with US rival Ingredion over a possible takeover. The British food ingredients company says it has received multiple approaches from Ingredion to acquire its business, which it reportedly values at £2.74 billion (US$3.70 billion). 

According to Tate & Lyle’s statement, Ingredion has made a conditional proposal regarding a possible cash offer for the entire issued and to be issued ordinary share capital of the company.

The company’s statement clarifies, “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.”

Under the UK’s takeover rules, Ingredion must make a firm announcement of intention to make an offer or walk away from the acquisition by 17:00 on June 11, 2026.

Why is Tate & Lyle attractive?

Tate & Lyle, with 165 years of ingredient innovation, partners with businesses to deliver healthier and more appealing F&B solutions.

Its expertise includes sweetening, mouthfeel, and fortification, providing ingredients that reduce sugar, calories, and fat, while adding fiber, protein, and enhancing texture and stability in various food categories, such as beverages, dairy, bakery, snacks, and sauces.

The company’s 2024 acquisition of CP Kelco for around £1.4 billion (~US.1.9 billon), a leader in pectin and specialty gums, strengthens its capabilities in mouthfeel solutions.

With projected revenue of £2.12 billion (US$2.86 billion) for the year ending March 2025, Tate & Lyle’s global footprint and innovation in F&B solutions make it an attractive target for growth and market expansion.

This potential takeover highlights the ongoing consolidation in the food ingredients sector, where Tate & Lyle’s expertise in healthier food solutions, such as reducing sugar and fat and improving texture, makes it a key player.

Tate & Lyle is listed on the London Stock Exchange under TATE.L, with American Depositary Receipts trading as TATYY. The company has over 5,000 employees in 38 countries and serves customers in more than 120 countries.

Ingredion’s record full-year earnings

Ingredion posted record full-year reported earnings per share of US$11.18 — up from US$9.71 in 2024 — despite a 3% decline in net sales to US$7.2 billion, as the company’s texture and clean label portfolio outperformed a struggling North American sweetener business hit by production setbacks and weakening beverage demand.

For 2026, the company expects sales to grow by a few percentage points and per-share profits to land between US$11.00 and US$11.80.

Ingredion and AI protein discovery firm Shiru recently announced a global R&D collaboration aimed at accelerating the discovery and commercialization of novel functional proteins for food, beverage, supplements, and specialized nutrition.