Tate & Lyle has agreed to a £2.7bn takeover by rival American food firm Ingredion, marking the latest departure of a historic brand from the London stock market.
The 123-year-old business said Ingredion's offer – valued at 615p per share – represents an "attractive opportunity for shareholders."
The deal follows another "disappointing" set of results from the company, which has been grappling with weakening consumer demand.
The ingredients firm is best known for its golden syrup brand, though it sold off the rights to its sugar business in 2010 and has since grown its ingredients and flavourings operations.
In announcing the board's unanimous backing of the deal, Tate & Lyle said the operating environment for both the firm and its customers "has deteriorated" in recent years, "with consumer sentiment weakening across all major regions," as reported by City AM.
The company posted a three per cent fall in revenue in October and had been working to reverse the decline through a $200m cost-cutting programme.
Tate & Lyle said on Monday it remains "confident" in its strategic direction, but warned that "the continuation of the current challenging market environment creates risks and uncertainties."
The firm described its new owner as an "excellent steward" of the company, one that will enable the business to achieve "greater potential [and] greater scale."
Tate & Lyle was established in 1921, when the sons of competing sugar refiners Henry Tate and Adram Lyle merged their fathers' companies following their deaths. It has been listed in London since 1938.
In 2024, the company invested $1.8bn (£1.4bn) in acquiring pectin and gum business CP Kelco, aiming to establish itself as a "leader in mouthfeel [and] a critical driver of customer solutions."
Ingredion's proposal comprises 595p in cash per share, alongside a final dividend exceeding 13p for the previous full financial year and a 6.8p interim dividend covering the six months since March.
David Hearn, Tate & Lyle's chairman, said: "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."
Jim Zallie, chairman of Ingredion, said the new combined business will "be better positioned to serve customers' needs for the development of great-tasting, healthier and affordable food products that consumers demand."
New York-listed Ingredion manufactures starches, sweeteners and pea protein for the food, beverage, brewing and pharmaceutical sectors.
Ingredion maintains the acquisition will expand its global footprint, strengthen its brand recognition and deliver total combined revenue of $9.9bn.
The transaction represents the latest departure of a historic brand from London's stock exchange, and arrives as several other listed heavyweights – such as Intertek and Easyjet – face takeover pressure.
