The $4.3 billion deal: a sweet premium for shareholders

Tate & Lyle, a British institution founded in 1921, has sold itself to its US rival Ingredion for a $4.3 billion deal, marking another blow to the City amid a spate of approaches for British firms by overseas firms.

The agreed deal gives shareholders 595p a share, plus dividends of 20p a share, representing a 64 per cent premium to Tate & Lyle's shares before Ingredion made its interest public.

Tate & Lyle warned over full-year profits last October and revealed a 10 per cent drop in first-half profits in November, but the takeover sent its shares soaring by over 45 per cent.

A familiar pattern from the 2019 crash

The deal marks another blow to the City amid a spate of approacehs for British firms by overseas firms, following a handful of FTSE 100 firms falling into foreign hands this year .

Last week,William Hill owner Evoke agreed to a $243 million takeover by Greek gaming group Intralot, and laboratory testing firm Intertek supported a $9.4 billion bid from Swedish private equity firm EQT.

It followed a $9.9 billion takeover of Schroders by US rival Nuveen and Lloyd's of London underwriter Beazley agreeing to be bought by Zurich Insurance in an $8.1 billion deal.

What auditors flagged in the May filing

Tate & Lyle's auditors flagged concerns over the company's financial performance in its May filing, warning of a 10 per cent drop in first-half profits.

The company also sold off the European operations of its namesake sugar business, including Lyle's Golden Syrup , to American Sugar Refining in 2010.

Chief executive of Ingredion,Jim Zallie, 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.'

Who is the unnamed buyer?

The unnamed buyer, Ingredion,is a US-based ingredients firm that will see the combined business better positioned to serve customers' needs for the development of great-tasting, healthier and affordable food products.

Ingredion's chief executive, Jim Zallie, has stated that the combined business will be better positioned to serve customers' needs, but the company has not disclosed the identity of the buyer.