Tate & Lyle shares surged 45% Thursday after confirming a £2.7bn takeover bid from US peer Ingredion. The FTSE 250 company's board entered discussions with the New York-listed ingredients group, which made multiple approaches regarding a possible offer. The bid values Tate & Lyle shares at up to 615p through 595p cash plus 20p in dividends.

The 165-year-old British company once dominated global sugar production but has strategically shifted toward ingredients over two decades. Its core business now involves helping packaged food and beverage companies reformulate products by reducing salt, fat, and sugar content. This move away from bulk commodities has positioned Tate & Lyle in the growing health-focused food ingredients market.

Ingredion operates similarly, assisting the food industry with reformulation while selling sweeteners and starches. The takeover reflects consolidation in the food ingredients sector as companies seek stronger offerings amid changing consumer preferences. Tate & Lyle's shares jumped to 546.5p after the announcement, reaching their highest level since August as investors bet on the deal's success.