By Ian Walker
Tate & Lyle shares jumped in early trade after the ingredients firm became the latest U.K. takeover target by a U.S. company as it agreed to a 2.7 billion pounds ($3.60 billion) bid from Ingredion.
Shares were up 62.60 pence, or 13%, at 554 pence in early morning European trading. They are currently up 48% over the year to date. Ingredion shares are up 0.5% in premarket trading.
Under the deal, accepting shareholders of the FTSE 250-listed company would get 595 pence in cash and up to 20 pence in dividends. The cash offer value is a 59% premium to Tate & Lyle's closing price of 374.80 pence on May 13, the day before it disclosed the takeover talks.
The Tate & Lyle directors unanimously intend to recommend the deal, the companies 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," Chairman David Hearn said.
"Combining Ingredion and Tate & Lyle's complementary portfolios creates a global leader in ingredient solutions with the expertise and geographic reach to help shape the future of food," Ingredion Chief Executive Jim Zallie said.
Recently U.S. investment firm Castlelake said it was considering an offer to buy London-listed budget airline easyJet for a minimum of 3.06 billion pounds. CAB Payments, Senior and Bodycote all received takeover approaches from U.S. firms but the deals fell through.
The London Stock Exchange has also faced a number of delistings in recent years with companies moving their main trading venue to the U.S.
Flutter Entertainment--which houses FanDuel, PokerStars, and Paddy Power among its brands--started trading in New York in January 2024 and made that its prime listing from May 31 of the same year.
Last month money-transfer company Wise switched its main listing to New York, while retaining a secondary listing in London. Rental company Ashtead cancelled its London listing in March and listed its main U.S. business Sunbelt Rentals on the New York Stock Exchange.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
June 08, 2026 04:19 ET (08:19 GMT)
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