Johnson Matthey Shares React to Honeywell Deal Down‑size
Johnson Matthey PLC (JMAT.L) opened Monday’s trading session on a sharp decline, reflecting the latest revision to its agreed sale of the Catalyst Technologies (CT) business to Honeywell International Inc. The London‑listed company had previously set an enterprise value of £1.8 billion for CT, but the parties have now settled on £1.325 billion, a 26 % reduction that aligns with the unit’s weaker 2025/26 performance and the broader challenging market environment for catalyst supply.
The price cut was announced in a joint statement released on 23 Feb 2026, after a series of negotiations in which Honeywell reportedly sought to mitigate regulatory risks and business milestone concerns. In the wake of the announcement, Johnson Matthey’s shares fell from the 52‑week high of £24.34 to a closing price of £22.84, reflecting a 5 % swing down on the day. The drop has been compounded by broader market volatility, with the FTSE 100 rebounding from earlier losses caused by U.S. tariff uncertainty but still trading below its 52‑week low of £11.31.
The CT unit, a core element of Johnson Matthey’s sustainable technologies portfolio, had been a key driver of the company’s strategy to promote a cleaner world through advanced chemistry and catalysis. The revised sale price underscores the volatility of the chemicals sector and the pressure on specialty chemical firms to balance growth ambitions with realistic valuation expectations.
Honeywell’s decision to renegotiate rather than walk away—after earlier reports of potential abandonment—has been interpreted by market analysts as a pragmatic move to preserve the strategic fit between the two companies while navigating regulatory hurdles. The extended closing timetable, now set for the end of 2026, offers Johnson Matthey time to reassess its capital allocation strategy, particularly as it faces a low price‑to‑earnings ratio of –42.14 and a fluctuating share price that has been a point of concern for investors.
Looking forward, Johnson Matthey must navigate the dual challenges of maintaining its position in the high‑value sustainable technology space and managing shareholder expectations amid a market that has been testing the resilience of specialty chemical firms. The company’s ability to secure a favourable outcome from the CT transaction and to capitalize on emerging opportunities in process design and catalysis will likely determine its trajectory in the coming quarters.
