Tate & Lyle plans to sell off its Food & Industrial Ingredients, Europe, division following changes in the European sugar regime.

The sugar company said ownership of the business was no longer an essential part of its strategy to focus on value-added ingredients.

Tate & Lyle said it will continue to develop its value-added food ingredients business in Europe by buying ingredients companies.

EU sugar regime reform entails a large drop in the guaranteed minimum sugar price, compensation for farmers and a restructuring fund to encourage uncompetitive sugar firms to leave the industry.