Tate and Lyle shares soar after £2.7bn takeover bid from US firm

Tate & Lyle has revealed it is in talks with a US firm over a £2.7billion takeover, making it the latest UK-listed company that could soon fall into foreign hands. 

London-listed Tate & Lyle said it had received an approach from its US peer Ingredion for 615p per share, comprising 595p in cash and dividends of up to 20p a share.

It marks a 64 per cent premium to Wednesday’s closing price of 376.2p.  

The FTSE 250 firm said its board was in discussion with Ingredion, which had made ‘a number of approaches’, but it stressed there was no certainty of an offer.

Ingredion has until 5pm on 11 June to make a firm offer or walk away.

Shares jumped 44 per cent to 540p following the update, having come under pressure over the past year. 

Tate & Lyle warned over full-year profits last October and revealed a 10 per cent drop in first-half profits in November.

It comes amid a spate of approaches for British firms by overseas firms, with laboratory testing firm Intertek earlier this week supporting a £9.4billion bid from Swedish private equity firm EQT.

Intertek will be the third FTSE 100 firm to fall into foreign hands this year, following the £9.9billion takeover of Schroders by US rival Nuveen and Lloyd’s of London underwriter Beazley agreed to be bought by Zurich Insurance in an £8.1billion deal.

Other UK firms outside the blue-chip index have also been approached, with Gamma Communications revealing American private equity group Providence Equity Partners is among those it is in discussions with over a deal.