TATE & LYLE : Limited upside after acquisition news; downgrade to Neutral

Research evidence excerpt

TATE & LYLE : Limited upside after acquisition news; downgrade to Neutral

EQUITIES

CONSUMER INGREDIENTS

TATE & LYLE PRICE*NEUTRAL564p  TARGET PRICEFROMOUTPERFORM595p (UPSIDE 5%) TARGETunchangedPRICE EPS 03/27e-4% EPS 03/28e-1%

TATE & LYLE ADR PRICE*NEUTRALUSD26.5  TARGETFROMOUTPERFORMPRICE USD31.7 (UPSIDE 20%) TARGETunchangedPRICE EPS 03/27e-4% EPS 03/28e-1%

Limited upside after acquisition news; downgrade to Neutral

Tate’s shares were up ~15% yesterday following Ingredion’s confirmed offer, but they still trade at a9 JUNE 2026

Securities Research Report ~6% discount to the all-cash offer price of GBp595 per share, we think reflecting investor uncertainty

Production time: 05:38* (London time)

about potential anti-trust implications (see here for investor feedback). We see limited upside from

Research Analysts & Publishing Entities

here and downgrade to Neutral; our GBp595 TP based on the offer price is unchanged.

Joan Lim

BNP Paribas London Branch Combined portfolio and potential synergies look compelling+(44) 207 039 9410

joan.lim@uk.bnpparibas.com The combined company will have a scaled global platform with extended solutions capabilities, a

broader ‘toolbox’ and an extended customer reach. More than 50% of sales will be in higher value,

Nicola Tang, CFA

downstream ingredient, and Ingredion sees cross-selling opportunities across regions andBNP Paribas London Branch

(+44) 203 430 8490 categories. No material dis-synergies have been identified so far.

nicola.tang@uk.bnpparibas.com

Concerns over anti-trust likely to continue to be a small headwind to shares

While the deal is expected to complete in H2 2027, there is a small, unlikely chance that Ingredion

could walk away from the deal if they are unable to meet the regulatory conditions to enable