Tate & Lyle agreed to be acquired by its US competitor, Ingredion, for USD 3.6 billion. The company combining all capabilities targets USD 130 million in synergies, Tate & Lyle points out. A 15% boost in earnings is expected from the first year.

The deal underscores how food companies are reshaping portfolios to tap demand for ​lower-sugar, higher-protein and functional products with added health and nutrition benefits, even as weak ​consumer sentiment weighs on near-term growth.

Tate & Lyle has approximately 5,000 employees working in around 70 locations in 37 countries, serving customers in more than 120 countries. Tate & Lyle is listed on the London Stock Exchange. Following the announcement, its shares went up by nearly 13%.

Photo: Pexels, f2m collage