Tate & Lyle agrees £2.7bn takeover by US rival in new blow to FTSE
Summary
Tate & Lyle, a UK company known for artificial sweeteners, has agreed to be bought by the US company Ingredion for £2.7 billion. The deal may result in about 475 job cuts but will create a larger company with combined revenue of almost $10 billion.Key Facts
- Ingredion will buy Tate & Lyle for £2.7 billion, valuing each share at 615p.
- The takeover price is about 60% higher than Tate & Lyle’s share price before the news.
- Around 475 jobs (3% of the combined workforce) might be cut after the merger.
- Tate & Lyle employs nearly 5,000 people worldwide, with about 200 in the UK.
- Ingredion is based in Chicago and has about 11,000 employees globally.
- Tate & Lyle shifted focus to artificial sweeteners and special food ingredients after selling its sugar business in 2010.
- The combined company expects around $9.9 billion in yearly sales and $1.8 billion in profits.
- The deal is another example of important UK companies leaving London’s stock market.
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