Susannah Streeter, chief investment strategist at Wealth Club, said: “This deal will add to concerns about the continued exodus of companies from the London Stock Exchange. UK-listed firms are languishing at lower valuations compared with many overseas peers, particularly in the United States, and there remains plenty of appetite among foreign suitors to snap them up.
“Tate & Lyle has a long history as an iconic British brand and has been a fixture of London’s market, but it is now set to be swallowed up by American giant Ingredion.
“The takeover underlines how a valuation gap has opened up between UK and US markets, leaving British companies vulnerable to acquisition. While shareholders are being offered an attractive premium, the bid also reflects the challenges Tate & Lyle has faced amid weaker consumer demand and a tougher operating environment.
“For overseas buyers with access to deeper capital pools, the UK continues to represent fertile hunting ground. Each departure chips away at the market’s appeal to investors and reduces the pool of established businesses available to back.
“The timing is particularly striking, coming as the House of Commons Business and Trade Committee publishes its report on mobilising investment in the UK. It reflects growing recognition that a far greater effort is needed to revitalise London’s capital markets and improve funding for British businesses. It highlights that 94 per cent of UK scale-ups are acquired before reaching maturity.
“With promising young firms being bought out early and established names increasingly falling into foreign hands, pressure is mounting for policymakers, regulators and institutional investors to pull more levers to support home-grown companies and stem the flow of corporate departures.”
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