Honeywell Amends Deal for Johnson Matthey Unit
Honeywell announced it has entered into an amended agreement to acquire Johnson Matthey's catalyst technologies business. The total consideration for the deal has been adjusted to £1.325 billion. The long stop date was also extended to accommodate outstanding transaction requirements.
- The original agreement for the acquisition was announced in May 2025 for £1.8 billion. The amended price reflects the recent business performance of the catalyst unit, which has seen the deferral of key projects and reduced profitability due to a challenging market. - Before the amendment was announced, reports in February 2026 indicated that Honeywell was considering abandoning the deal due to concerns about regulatory approvals and the achievement of certain business milestones. - The acquisition is a key part of Honeywell's expansion into energy and sustainability-focused technologies, broadening its portfolio in renewable fuels and petrochemicals. This move aligns with Honeywell's broader strategy of growth through acquisitions, having invested significantly in other businesses since late 2023. - For Johnson Matthey, the sale is part of a larger restructuring effort to streamline its operations and focus on its Clean Air and platinum group metals (PGM) services. - Upon completion of the sale, Johnson Matthey plans to return approximately £1 billion of the net proceeds to its shareholders. This will be accomplished through a special dividend and a share buyback program. - The deal is still pending regulatory approvals, and the new "long stop" date for the transaction to be finalized has been extended to July 21, 2026, with a possible further extension to August 21, 2026. - Johnson Matthey's Catalyst Technologies business develops and manufactures catalysts and licenses process technologies for the refining and chemical industries, with a growing portfolio in sustainable technologies. - Despite the price reduction, Honeywell still expects the acquisition to be accretive to its adjusted earnings per share in the first full year after closing.
