British food and beverage ingredient company Tate & Lyle has confirmed it is in takeover discussions with US-based Ingredion over a potential £2.7 billion ($3.7 billion) acquisition.

The proposed offer represents a 64% premium to Tate & Lyle's closing share price on Wednesday, according to market valuations. The London-listed company's shares rose significantly following the disclosure of the takeover talks.

Tate & Lyle, which produces sweeteners and other food ingredients, would become the latest UK-listed company to potentially be acquired by a foreign buyer if the deal proceeds. The company has been a fixture on the London Stock Exchange and serves food and beverage manufacturers globally.

Ingredion, the potential acquirer, is also a major player in the food ingredients sector, specializing in ingredient solutions for food, beverage, brewing and industrial applications. The US company would significantly expand its operations through the acquisition of its British rival.

The companies have not disclosed the timeline for completing their discussions or whether a formal offer will ultimately be made. Takeover talks at this stage remain preliminary, and there is no guarantee the negotiations will result in a completed transaction.