The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Aimee Donnellan

DUBLIN, May 15 (Reuters Breakingviews) - US ingredients maker Ingredion has offered to buy its British rival for $5 bln. A combination will help the two cope with the changing tastes of weight loss drug users and bring savings. Unlike Unilever’s recent transatlantic food merger, an all-cash structure is easy to digest.

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CONTEXT NEWS

U.S. food ingredients maker Ingredion is in talks with British rival Tate & Lyle over a possible takeover of the London-listed firm in a 2.74 billion pound ($3.7 billion) deal, the British company said on May 14.

A deal between Tate & Lyle, known for its artificial sweeteners used in Coca-Cola drinks, and Ingredion, could create a food and beverage ingredients giant worth more than $10 billion.

Under the proposal, Tate & Lyle said its shareholders would receive up to 615 pence per share — comprising 595 pence in cash and up to 20 pence in dividends — a 64% premium to its closing price on Wednesday.

Shares in Tate & Lyle were trading at 537.5 pence a share on May 15.