Tate & Lyle ordered to pay £18M in damages

By Laurence Gibbons contact

- Last updated on GMT

Related tags: Archer daniels midland, Remainder

Tate & Lyle has been ordered to pay £18M in damages
Tate & Lyle has been ordered to pay £18M in damages
Tate & Lyle plc has been ordered to pay £18M in damages to American Sugar Refining (ASR) by the Commercial Court in London after the US firm acquired its EU sugars business.

ASR made a number of claims totalling about £40M following the deal in 2010 for a consideration of £211M.

The court found in favour of ASR on two elements of its claims, while rejecting all other aspects.

Tate & Lyle said the impact of the judgement would be reported as an exceptional item within discontinued operations. Interest and costs will also be determined in due course, it added.

Corn mills sale

Tate & Lyle said it was “progressing well”​ in seeking regulatory approval for the £157.7M ($240M) sale of its Eaststarch corn wet mills in Bulgaria and Turkey to Archer Daniels Midland, previously run as a joint venture between the two.

“The process of obtaining regulatory approval for the re-alignment of the Eaststarch joint venture in Europe is progressing well and we expect to complete this transaction around the end of the second quarter of the financial year,” ​Tate & Lyle said in a market update posted in July.

The London-based business said trading had been in line with expectations for the first quarter of the financial year – April 1 2015 to June 30 2015.

Speciality Food Ingredients made an encouraging start to the year and performed ahead of the comparative period, it claimed.

Volume improving

Volume across the balance of the Speciality Food Ingredients business was slightly behind the comparative period, with volume improving towards the end of the quarter, it added.

“We continued to take steps to address the impacts of the supply chain disruption experienced last year and we expect volume growth to strengthen through the remainder of the year as the additional capacity comes on-line in the second half,”​ it said in a statement.

Splenda Sucralose performed solidly as it continued to pursue volume only where it sees value, it added.

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