Sweetener and ingredients giant Tate & Lyle has agreed to a £2.7billion takeover deal from US rival Ingredion.
Illinois-based Ingredion will pay 595p per share, plus 13.2p for a final dividend and 6.8p for an interim dividend, valuing Tate & Lyle at approximately £2.7billion.
The acquisition premium, ranging from 58.7% to 70.8% over Tate & Lyle's recent share prices, has been unanimously recommended by Tate & Lyle directors.
Commenting on the acquisition, David Hearn, Chairman of Tate & Lyle, said: "Over the last few years, Tate & Lyle has been successfully repositioned as a leading global speciality food and beverage solutions business aligned to growing consumer demand for healthier, more nutritious and sustainable food and drink.
"I would like to recognise the exceptional contribution of the team at Tate & Lyle for their talent, insight and commitment which has been a key driver of this transformation and the business we have built.
"Looking forward, 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.
"The Board of Tate & Lyle believes Ingredion's offer represents an attractive opportunity for shareholders to crystallise value in cash, and that it will be an excellent steward of Tate & Lyle.
"The Board therefore unanimously recommends Ingredion's offer to Tate & Lyle shareholders."
Commenting on the acquisition, Jim Zallie, Chairman of the Board and Chief Executive Officer of Ingredion, said: "Combining Ingredion and Tate & Lyle's complementary portfolios creates a global leader in ingredient solutions with the expertise and geographic reach to help shape the future of food.
"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.
"This compelling combination will create exciting new possibilities for employees and generate significant value for all stakeholders."
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