Nothing sweet about Tate & Lyle deal for London stock market

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London’s stock market has been on the struggle bus for years, with firms choosing to go public elsewhere. The latest blow has come from Tate & Lyle, which has agreed to be acquired by a US company, Ingredion, meaning it could drop off the London Stock Exchange after nearly a century. Last year the LSE had its strongest year since 2021, raising £1.9bn, but this is a fraction of the £27bn that it raised in 2006. There has also been a series of high-profile exits. The main cause is a valuation gap in which London-listed firms generate lower returns than their peers due to a lack of liquidity. To lose Tate & Lyle, an iconic British manufacturer which used to make sugar but now focuses on artificial sweeteners, would be particularly devastating.