Tate & Lyle: Setting the Agenda

Research evidence excerpt

Tate & Lyle: Setting the Agenda

Equity Research

European Consumer Staples

15 May 2026

Tate & Lyle

Setting the Agenda

First LookTate will report FY26 on 21 May. Ingredion's 615p cash

takeover approach the key focus. We look for more clarity on

Huber stance, US antitrust risk and any Primient agreement TATE.L/TATE LN EQUAL WEIGHT European Consumer

Staplesimplications. Tate standalone FY27 margin is likely pressured NEUTRAL

Price Target GBp 395

by reinvestment and higher energy costs. Price (14-May-26) GBp 545

Potential Upside/Downside -27.5%

Source: Bloomberg, Barclays Research

Ingredion takeover approach the key focus: Ingredion (covered by Ben Theurer) this week

confirmed it had made a conditional all‑cash offer to acquire Tate & Lyle at 615p per share (see

Conditional Offer to Buy Tate & Lyle), implying an equity value of c.£3.7bn and a >60% premium European Consumer Staples

to the undisturbed price, with discussions ongoing and a Takeover Code deadline of 11 June to Alex Sloane

formalise a bid. We see strategic logic given strong product overlap in speciality starches and +44 (0)20 3555 0645

sweeteners and scope for meaningful synergies (notably procurement, footprint optimisation alexander.sloane@barclays.com

Barclays, UKand back-office savings), with Ingredion’s balance sheet and FCF profile providing capacity to

fund and delever post-deal despite an initial leverage step-up. Key unknowns remain: (1) Warren Ackerman

Huber’s stance, given it accepted equity at a higher share price in the CP Kelco deal, making its +44 (0)20 3134 1903

support less certain; (2) potential anti-trust hurdles in US speciality starches where combined warren.ackerman@barclays.com

Barclays, UKshare could exceed ~30% in some categories; and (3) the implications for Tate’s 20-year Primient