Speciality chemicals group Johnson Matthey has agreed to cut the sale price of its Catalyst Technologies (CT) division by more than a quarter to £1.33 billion, after the unit underperformed in a challenging market. The revised deal with US buyer Honeywell International reduces the original £1.8 billion price tag by 26 per cent, the company announced on Monday.
The reduction reflects CT’s business performance during 2025/26, including the deferral of key sustainable solutions licensing projects and reduced profitability from catalyst supply. Johnson Matthey now expects to return around £1 billion of net proceeds to shareholders, comprising an £800 million special dividend and a £200 million share buyback programme.
Shares in the London-listed company fell 16 per cent in morning trading following the announcement. The price cut comes after weekend reports that Honeywell had considered walking away from the deal over regulatory concerns and missed business milestones.
The two firms have extended the deadline for completing the transaction from February 21 to July 21, with an option to extend further to August 21. Completion is expected by the end of August. The sale of CT, which designs and produces catalysts for the chemicals and energy industries, had previously boosted Johnson Matthey’s shares by nearly 60 per cent over the past year.
The disposal is part of Johnson Matthey’s turnaround strategy to focus on its clean air and platinum group metal chemicals businesses. The original agreement was struck in May, with net proceeds to investors estimated at £1.6 billion.
