The potential takeover of Tate & Lyle by US firm Advent International has stirred the market.
- Shares in Tate & Lyle have risen by over 12% following takeover speculations.
- The food and beverage company is valued at approximately £3.2 billion after the news.
- Advent International, a major US private equity firm, may bid beyond £2.8 billion.
- Recent changes in listing regulations have allowed Tate & Lyle strategic acquisition moves.
Tate & Lyle’s stock experienced a significant boost of over 12% as rumours spread about a potential takeover bid from Advent International, a prominent American private equity firm. This surge has pushed the company’s market value to around £3.2 billion, highlighting the market’s optimism regarding the possible acquisition.
The FTSE 250 company is reportedly being eyed by Advent International, marking a potential strategic move in the competitive food and beverage sector. According to insider sources referenced by the Financial Times, Advent International’s proposal is expected to exceed Tate & Lyle’s current market valuation of £2.8 billion. However, this bid remains in the initial stages, with no definitive offer yet declared.
Advent International, which holds the rank of the eighth-largest private equity firm globally, has a history of high-profile acquisitions, including its previous pursuit of Cobham, a UK aerospace company. This previous transaction involved a contentious process with the Competition & Markets Authority over national security considerations before its successful completion.
In a strategic bid to enhance its operations, Tate & Lyle recently decided to capitalise on updated City regulations that permit companies to bypass shareholder votes for certain transactions. This strategic leverage was exemplified in Tate & Lyle’s recent agreement to acquire CP Kelco for $1.8 billion (£1.4 billion), encompassing operations across the US, China, and Denmark. The deal is slated for completion by the end of the year.
Both Advent International and Tate & Lyle have refrained from commenting on the potential takeover. This silence leaves investors and market watchers keenly observing the developments that might unfold from this business proposition.
The unfolding events present a significant potential shift in Tate & Lyle’s market positioning.
