Sweetener and ingredients firm Tate & Lyle has agreed to be bought by US rival Ingredion Incorporated for around £2.7 billion in the latest takeover of a UK company.
Under the offer, Illinois-based Ingredion will pay up to 615p per share for London-listed Tate & Lyle, including 595p in cash and dividend payments due on top.
The deal values Tate at £2.7 billion, or £3.7 billion including debts, and follows a number of earlier proposals by Ingredion.
It comes after Tate’s shares have been under pressure over the past year, with the firm warning over full-year profits last October and revealing a 10% drop in first half profits in November.
David Hearn, the chairman of Tate & Lyle, said: “Looking forward, we believe the next chapter with Ingredion will create a business with even greater potential, greater scale, and increased investment in innovation in support of customers.
“The board of Tate & Lyle believes Ingredion’s offer represents an attractive opportunity for shareholders to crystallise value in cash, and that it will be an excellent steward of Tate & Lyle.”