The ingredients giant Ingredion has agreed a recommended £2.7bn cash acquisition of London-listed Tate & Lyle, in one of the most consequential consolidations the global food and beverage ingredients sector has seen in years.
The combined group could generate approximately $9.9bn in revenue and will focus on ingredients that improve texture, cut sugar and boost nutritional value, as food manufacturers target demand for fibre, protein and functional health benefits amid the continued rise of GLP-1 weight-loss drugs.
The transaction brings together two highly complementary portfolios — Tate & Lyle brings historic dominance in sweetening and sugar reduction, while Ingredion contributes state-of-the-art technologies in gums, starches and texture modifiers.
The merged entity will also gain access to Tate & Lyle's capabilities in multi-ingredient systems, recipe development, mouthfeel and fortification, alongside Ingredion's established texturant and sugar-reduction platforms.
The GLP-1 effect
Consumers using GLP-1 appetite-suppressing treatments typically eat less, seek higher protein and fibre content and reduce sugar consumption.
This has driven a wave of product reformulation, creating demand for the kind of integrated ingredient solutions that a combined Ingredion-Tate & Lyle could provide.
Ingredion's own 2025 research found that 64% of global respondents were actively consuming less sugar for health reasons, with GLP-1 adoption in the US alone rising from 10% to 18% of consumers between 2024 and 2025.
The acquisition also brings together complementary geographic supply networks across the globe, which Ingredion says will allow the combined group to deliver faster, more reliable and cost-effective ingredient solutions for customers worldwide.
Tate & Lyle has undergone substantial repositioning in recent years.
The company sold its Primary Products business in the Americas in transactions completed in 2022 and 2024 and in November 2024 acquired CP Kelco, strengthening its capabilities in pectin and speciality gums and expanding its position in mouthfeel, sweetening and fortification.
But, despite this transformation, the business has struggled to convert its strategic repositioning into share price performance.
The firm issued a pair of profit warnings in 2025 that kept the stock subdued and trading at a persistent discount to European peers.
Jim Zallie, Chair, President and CEO of Ingredion, said: "The combined business will be better positioned to serve customers' needs for the development of great-tasting, healthier and affordable food products that consumers demand."
The acquisition is expected to be implemented through a court-sanctioned scheme of arrangement under the UK Companies Act 2006 and remains subject to Tate & Lyle shareholder approval, UK High Court sanction and antitrust clearances.
Completion is anticipated in the second half of 2027.