British institution Tate & Lyle has sold itself to its US rival Ingredion for a sweet £2.7billion deal, making it the latest UK-listed company to fall into foreign hands.

It will see the FTSE 250 ingredients firm, founded by the merger of two family-owned sugar business in Liverpool in 1921, leave the London stock market.

Tate & Lyle said on Monday morning the agreed deal gives shareholders 595p a share, plus dividends of 20p a share. 

The companies announced two weeks ago that they were in talks about the takeover, which sent Tate & Lyle shares soaring by over 45 per cent.

A transaction at 615p a share represents a 64 per cent premium to Tate & Lyle’s shares before Ingredion made its interest public.

Tate & Lyle warned over full-year profits last October and revealed a 10 per cent drop in first-half profits in November.

It also sold off the European operations of its namesake sugar business, including Lyle's Golden Syrup, to American Sugar Refining in 2010.

Chief executive of Ingredion, Jim Zallie, said: 'The combined business will be better positioned to serve customers’ needs for the development of great-tasting, healthier and affordable food products that consumers demand.'

Shares in the FTSE 250 firm jumped 12.3 per cent to 552p, having come under pressure over the past year amid weak consumer demand, rising costs and the increasing use of weight loss drugs. 

The deal marks another blow to the City amid a spate of approaches for British firms by overseas firms.  

Last week, William Hill owner Evoke agreed to a £243million takeover by Greek gaming group Intralot. 

It followed a handful of FTSE 100 firms falling into foreign hands this year, fuelling concerns that undervalued firms are being snapped up on the cheap.

Last month, laboratory testing firm Intertek supported a £9.4billion bid from Swedish private equity firm EQT, after the £9.9billion takeover of Schroders by US rival Nuveen and Lloyd's of London underwriter Beazley agreed to be bought by Zurich Insurance in an £8.1billion deal.