Tate & Lyle has agreed to be bought by its US rival Ingredion Incorporated in a deal worth about £2.7 billion, handing the London-listed sweetener and ingredients company to a buyer based in Illinois. Ingredion will pay up to 615p a share, made up of 595p in cash plus additional dividend payments.

For shareholders, the price is the key number. The offer values the business at £2.7 billion, or £3.7 billion including debts, and comes after several previous approaches from Ingredion. David Hearn said the next chapter with Ingredion would create a business with greater potential, greater scale and more investment in innovation for customers, while the board said the deal gives investors an attractive chance to crystallise value in cash.

Tate & Lyle had been under pressure over the past year. Last October it warned over full-year profits, then in November reported a 10 per cent drop in first-half profits, even as the board came out in support of the takeover. That combination makes the agreement feel less like a surprise than a clean exit at a moment when the company was already being forced to answer difficult questions about its performance.

The deal also extends a broader run of UK company takeovers and gives Ingredion a bigger foothold in a market where Tate & Lyle has long been a familiar name. What remains unclear from the agreement is whether shareholders will fully back the offer and how long any remaining steps toward completion will take.