Tate & Lyle (AO) | Buy | Cash offer from Ingredion

Research evidence excerpt

Tate & Lyle (AO) | Buy | Cash offer from Ingredion

Tate & Lyle Buy | Target Price: 500p

Given the above, we argue that a solution could be to offer shares in the combination as well, since in that way, Huber can roll

over its investment in T&L into an even stronger combination of Tate & Ingredion.

Ingredion and Tate combination offers good synergies

Overall, we like the strategic fit between both parties, and the synergies must be very significant. A point of attention is antitrust

in parts of the stevia and speciality starches market.

We like the industrial logic, as Ingredion is already a global ingredient-solutions player with c.$7.2bn of 2025 sales across

texturants, healthful solutions, starches and sweeteners, while Tate has become a more speciality-focused business following the

Primient exit and the acquisition of CP Kelco.

Strategically, the combination would strengthen Ingredion’s speciality platform, deepen its formulation and mouthfeel

capabilities, broaden customer access and improve its European footprint, while accelerating the group’s Texture & Healthful

Solutions strategy — already Ingredion’s key growth engine.

Antitrust looks like a real diligence item, but not an obvious deal breaker. The key point is that Tate’s full exit from Primient in

2024 removes the most problematic historic overlap in commodity starches and sweeteners. Regulatory focus would instead shift

to higher-value speciality ingredients such as clean-label starches, hydrocolloids, texturants, pectin, xanthan and sugar-reduction

systems. The main issue is likely portfolio strength rather than outright concentration. CP Kelco brings leading positions in pectin

and speciality gums, while Ingredion adds starch-based texturants and stevia capabilities through PureCircle. Regulators may