Tate & Lyle has revealed takeover talks with a US rival over a potential £2.7bn combination.
The London-listed sweetener and ingredients maker said on Thursday that it had received an all-cash approach from Illinois-based Ingredion
The companies are now in active discussions about a possible offer worth 615p per share. Shares in Tate & Lyle soared by over 47pc in afternoon trading on Thursday to 550p. The takeover tilt comes after a period of weakness for Tate & Lyle’s shares over the past year.
The company issued a warning over its full-year profits last October and revealed a 10pc drop in first-half profits in November. The approach represents the latest in a series of US deals for UK companies. Unilever sold its spreads division, including Marmite, to Baltimore-based spice and sauce maker McCormick in a £50bn deal earlier this year.