Tate & Lyle PLC on Thursday said that changes to UK listing rules by the UK Financial Conduct Authority mean that its acquisition of CP Kelco is no longer conditional on the approval of Tate & Lyle’s shareholders.

The company also left its annual outlook unchanged in a brief trading update.

The London-based sweetener and food ingredients supplier intends to combine with CP Kelco, an Atlanta, Georgia-based producer of pectin and specialty gums, to create a global specialty food and beverage solutions business in a $1.8 billion deal.

CP Kelco owner JM Huber Corp will become a long-term 16% shareholder in the group following the acquisition, with two representatives to be appointed to the Tate & Lyle board.

The transaction still remains conditional until certain customary regulatory approvals have been received, and the combination of Tate & Lyle and CP Kelco is expected to be completed by the end of 2024.

For the five months ended August 31, Tate & Lyle reported ‘positive volume momentum’, with trading in line with expectations. Its outlook for the year ending March 31, 2025 is unchanged, as it predicts revenue slightly lower than the previous year and earnings before interest, taxation, depreciation and amortisation growth of between 4% and 7%.

CP Kelco reported a stabilising financial performance for the eight months to August 31, with volume well ahead of the comparative period.

Shares in Tate & Lyle closed 0.1% lower at 669.00 pence each in London on Thursday afternoon.

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