Tate & Lyle, one of Britain's oldest publicly traded companies, has agreed to be acquired by Chicago-based Ingredion for £2.7bn, marking another major exit from London's stock market and placing nearly 500 jobs in jeopardy worldwide.
The FTSE 250 firm accepted an offer of 615p per share, roughly 60% above its trading price before takeover speculation surfaced. The sweeteners manufacturer, best known for its Splenda artificial sweetener brand, will become part of a combined group with projected annual revenue of $9.9bn and adjusted profits of $1.8bn.
The deal carries a significant employment cost. Both companies flagged a potential "material reduction" in Tate & Lyle's workforce, affecting approximately 475 workers, or 3% of the combined business. The company currently employs just under 5,000 people globally, with about 200 based in the UK at its London headquarters. Ingredion has roughly 11,000 employees worldwide.
Tate & Lyle's board chair David Hearn framed the merger as opening "the company's next chapter with Ingredion," promising a business with "greater scale and increased investment in innovation." Ingredion chair and chief executive Jim Zallie said the combination would create "a global leader in ingredient solutions" with expanded geographic reach.
The acquisition closes another chapter for a company that has struggled with investor confidence in recent years. Its share price had lost more than half its value over five years heading into this deal. The company divested its namesake sugar business to American Sugar Refining for £211m in 2010 and pivoted toward artificial sweeteners and specialty food ingredients. In 2024, it purchased US-based CP Kelco, a supplier of specialty gums and pectins, for $1.8bn.
Recent consumer demand has proven weak despite rising uptake of GLP-1 weight loss medications, which might have been expected to boost demand for artificial sweetening products.
The Tate & Lyle sale continues a troubling trend for London's equities market. This year alone, multiple London-listed firms have agreed to exits, including asset manager Schroders, insurer Beazley, and laboratory testing company Intertek, all facing pressure from activist investors or simply struggling valuations.
Author James Rodriguez: "Another crown jewel walking out the door on London's watch, and for what looks like a distressed price before takeover rumors even hit. This isn't consolidation, it's retreat."
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