Ingredion Inc. is in advanced talks to acquire Tate & Lyle Plc in a transaction valued at £2.7 billion ($3.6 billion), according to people familiar with the matter. The potential deal would mark a significant consolidation move in the food ingredients sector, bringing together two major players in specialty starches and sweeteners.

Advanced talks typically indicate that both parties have moved beyond initial discussions and are conducting detailed due diligence. This stage often involves negotiations over purchase price, deal structure, and regulatory considerations. The £2.7 billion valuation represents a substantial premium for Tate & Lyle shareholders, reflecting the strategic value of combining these complementary businesses.

If completed, the acquisition would see another prominent British brand exit the London stock market, continuing a trend of international takeovers of UK-listed companies. Tate & Lyle has traded on the London exchange for decades, making it a familiar name among institutional investors. The deal underscores ongoing appetite for UK assets among foreign buyers despite market volatility.

The merger would create a formidable competitor in specialty food ingredients, combining Ingredion's broad portfolio with Tate & Lyle's expertise in sweeteners and texturants. Investors will watch closely as negotiations progress toward what could be one of the year's largest food sector transactions.