Deutsche Bank downgrades Tate & Lyle to 'hold' after Ingredion deal

(Sharecast News) - Deutsche Bank cut its recommendation on Tate & Lyle on Friday to 'hold' from 'buy' after the company agreed to be taken over by US peer Ingredion in a £2.7bn deal. The bank noted that following Ingredion's firm offer for Tate, the shares have risen to 556p.

"The implied spread to the full offer of 615p now stands 10.6%, and is circa 7% below our 595p target price," it said.

"As such we think that the risk reward dynamic has shifted to be more neutral and accordingly we move our rating from buy to hold."

DB noted that Tate has provided a relatively long time frame for completion of the deal, citing the second half of 2027.

"Tate has identified eleven jurisdictions where it foresees potential anti-trust issues," it added.

At 1049 BST, the shares were flat at 554.25p.