Honeywell Amends Deal for Johnson Matthey Unit
Honeywell has entered into an amended agreement to acquire Johnson Matthey's Catalyst Technologies business. As part of the revised terms, Johnson Matthey significantly slashed the sale price to ensure the deal's closure, reflecting volatility in the global industrial sector.
- The new sale price is £1.325 billion, a reduction of £475 million from the £1.8 billion originally agreed upon in May 2025. This represents a 26% decrease from the initial deal value. - Johnson Matthey attributed the price cut to the Catalyst Technologies unit's weaker-than-expected performance in the 2025/26 financial year. This was caused by the deferral of key sustainable solutions licensing projects and lower profitability from catalyst supply in a "challenging market environment". - Prior to the amended agreement, there were reports that Honeywell was considering walking away from the deal, citing concerns over regulatory approvals and business milestones. - The acquisition is a strategic move for Honeywell to expand its UOP (Universal Oil Products) division, increasing its installed base in the refining, petrochemical, and renewable fuels sectors. The deal includes approximately 1,900 employees from Johnson Matthey's Catalyst Technologies business. - As a result of the lower sale price, Johnson Matthey has reduced its planned cash return to shareholders from £1.4 billion to approximately £1 billion. This will be distributed through an £800 million special dividend and a £200 million share buyback program. - The deadline to finalize the transaction has been extended from February 21, 2026, to July 21, 2026. There is a potential further extension to August 21, 2026, if certain regulatory approvals are still pending. - Despite the reduced price, Honeywell anticipates the acquisition will be accretive to its adjusted earnings per share within the first full year of ownership.
