Tate & Lyle has confirmed it is in discussions with US peer Ingredion over a possible cash offer for the UK food ingredients group, following a series of "earlier approaches" from the company.

Under the conditional proposal, Tate & Lyle shareholders would receive up to 615 pence per share in total value, comprising 595 pence in cash plus up to 20 pence in permitted dividends.

The dividends include a final dividend of up to 13 pence per share for the year ended 31 March 2026 and an interim dividend of up to 7 pence per share for the six months to 30 September 2026.

Tate & Lyle said the proposal relates to a potential acquisition of its entire issued and to be issued share capital and confirmed that discussions with Ingredion are ongoing. The company emphasised that there is no certainty a firm offer will be made, nor certainty around the final terms of any potential transaction.

The proposed valuation equates to approximately £2.74 billion, with the offer representing a 64% premium to Tate & Lyle’s closing share price on 13 May, according to Reuters.

Under UK takeover rules, Ingredion must by 5pm on 11 June 2026 either announce a firm intention to make an offer or state that it does not intend to proceed, unless the deadline is extended with regulatory approval.

Ingredion has not yet publicly commented on the matter. FoodBev has approached the company for comment.