Ingredion to buy Tate & Lyle in £3.7 billion cash deal

Westchester, Illinois-based Ingredion on June 8 agreed to buy Tate & Lyle PLC in a recommended all-cash deal valued at £3.7 billion, or $5.0 billion, bringing together two global ingredients businesses with about $10 billion in annual sales. Tate & Lyle shareholders would receive 595 pence in cash for each share, plus up to 13.2 pence for the final dividend for the year ended March 31, 2026 and up to 6.8 pence for the interim dividend for the six months to September 30, 2026, lifting the headline value to as much as 615 pence a share. The offer implies a premium of about 58.7% to Tate & Lyle’s closing price on May 13, or about 64.0% on the headline basis.

The transaction would be implemented through a court-sanctioned scheme of arrangement under Part 26 of the UK Companies Act 2006 and still needs shareholder, court and regulatory approvals. Ingredion said the combined company would be better positioned to serve customer demand in nutrition, affordability, taste, texture and quality, while broadening its specialty ingredients platform across texturants, sugar reduction and fortification. Ingredion also said the tie-up would add complementary capabilities in multi-ingredient systems and recipe development, while linking supply networks across the Americas, Europe, the Middle East and Africa, and Asia Pacific.

Ingredion expects about $130 million in annual net cost synergies by the end of 2030, with one-time implementation costs of about $175 million. The combined business is expected to generate about $9.9 billion in revenue and roughly $1.8 billion in adjusted EBITDA, a scale that would give Ingredion more leverage in a market where food, industrial ingredients and crop-based feedstocks increasingly overlap. For corn and starch buyers, the pairing matters because both companies sit in the chain that pulls on the same agricultural inputs used for sweeteners, texturants and other formulated products, a pull that can sharpen competition with ethanol and other bio-based fuel uses when crop values move.

Tate & Lyle completed its acquisition of CP Kelco on November 15, 2024, adding pectin, specialty gums and other nature-based ingredients to its portfolio. In May 2026, Tate & Lyle said the CP Kelco integration was complete and annualised run-rate cost synergies had reached $50 million, a year ahead of plan, even as demand remained challenging. The new takeover would build on that shift, giving Ingredion a larger platform in lower-sugar, higher-protein and functional formulations just as major food and ingredient groups keep recasting portfolios around health, texture and processing efficiency.