Tate & Lyle breaks up with $1.3bn sale of primary products business

The deal, which effectively breaks up the food and drink ingredients maker, would also involve the sale of the company's interests in the Almidones Mexicanos and DuPont Tate & Lyle Bio-Products Company joint ventures.

Tate & Lyle said it planned to return around £500mn to shareholders by way of a special dividend and associated share consolidation.

The balance would be retained “to strengthen Tate & Lyle's balance sheet, provide flexibility to invest to accelerate growth and for potential tax arising as a result of the proposed transaction”.

“Today’s announcement represents the next phase in the evolution of Tate & Lyle. Our one strong company will become two stronger businesses, both in a position to pursue new and exciting growth opportunities in their respective markets,” said chief executive Nick Hampton.

“Building on the strong platform established over the last three years, the proposed transaction will transform Tate & Lyle into a purpose-led, global food and beverage solutions business, serving faster growing speciality markets.”