Another former FTSE 100 blue chip is leaving London’s markets. Tate & Lyle has agreed to a recommended cash takeover by US ingredients group Ingredion, valuing the speciality food and beverage business at around £2.7 billion, or roughly £2.8 billion once permitted dividends are included.

Shareholders will receive 595p in cash per share, plus a final dividend of up to 13.2 pence for the year to March 2026 and an interim dividend of up to 6.8 pence for the following half-year.

The total offer of up to 615p a share represents a premium of about 64% to Tate & Lyle’s undisturbed closing price on 13 May, and roughly 71% to its three-month average.

The deal values Tate & Lyle at an enterprise value of £3.8 billion.

Tate & Lyle’s directors, advised by Goldman Sachs and Greenhill, intend to recommend it unanimously. They hold about 17.1% of the shares.

The deal doesn’t look opportunist; there have been issues at Tate & Lyle for some time.

Tate & Lyle has spent the past few years reshaping itself, selling its lower-margin Primient commodity business in the Americas and buying speciality gums and pectin maker CP Kelco in late 2024. The aim was to pivot towards healthier, higher-growth ingredients, building expertise in reducing sugar, calories and fat while adding fibre and protein.

By last July, the group had set out a medium-term plan targeting 4-6% organic revenue growth, with earnings outpacing both EBITDA and revenue.

But Consumer sentiment has softened across major regions over the past year, and Tate & Lyle, like several peers, trimmed its guidance. The year to March 2026 brought a 3% fall in both revenue and pro forma adjusted EBITDA, in line with the lowered expectations flagged the previous October.