London, Feb 24, 2026, 09:37 GMT — Regular session
- Johnson Matthey shares barely budged early Tuesday, following a steep decline the previous session.
- Honeywell’s catalyst deal now stands at £1.325 billion, reducing the anticipated payout to shareholders.
- CEO Liam Condon picked up shares following Monday’s selloff.
Johnson Matthey clawed back some ground Tuesday morning, with shares holding near 1,929 pence after Monday’s sharp drop. Investors were still digesting the company’s decision to accept a reduced sale price for its Catalyst Technologies unit to Honeywell.
These updated terms take on added significance, as unloading Catalyst Technologies sits at the heart of Johnson Matthey’s strategy to slim down and send capital back to investors. According to the company, roughly £1.0 billion in net proceeds should be returned post-sale. That includes an £800 million special dividend tied to a share consolidation, plus a £200 million buyback in the open market.
Investors now have to figure out just how much Johnson Matthey’s turnaround ride hinges on delivery—and on regulatory green lights—after the deal price got trimmed. The company said it moved the long-stop date to July 21, and if approvals are still in limbo, there’s room to stretch that out to Aug. 21.
Shares of Johnson Matthey tumbled 16.4% on Monday, dragging it to the bottom of London’s mid-cap index. The company agreed to a reduced sale price, according to a Reuters report.
Honeywell, the acquirer, announced the revised deal slashes the purchase price to £1.325 billion from the earlier £1.8 billion, while the expected closing remains set for the end of August 2026. Completion still depends on standard conditions like regulatory sign-off.
Johnson Matthey CEO Liam Condon picked up 5,226 shares on Feb. 23, spending roughly £100,984 at an average £19.22688 a share, according to a separate filing.
Analysts zeroed in on what the renegotiation signals about the unit’s immediate leverage as it heads into the last phase of regulatory approvals. “Whilst the revised consideration is clearly not an optimal outcome, it remains more favourable than weekend reports suggesting Honeywell was considering terminating the deal,” Jefferies analysts wrote in a note cited by Reuters. MarketScreener
Johnson Matthey stuck to its 2025/26 outlook and pointed to advancements on its “cash-focused” model. The company also flagged the Catalyst Technologies performance problems tied to the updated deal terms. Matthey
Even so, there’s a clear risk here: the deal hasn’t crossed the regulatory finish line and delays have already crept in. The Clean Air division, which generates the bulk of Johnson Matthey’s earnings through catalytic converters, is also under threat as electric vehicles gain ground, according to AJ Bell’s Russ Mould.
With the July 21 long-stop date coming up, traders are scanning for any regulatory green lights. They’re also waiting to see specifics on the special dividend, share consolidation, and buyback mechanics once the deal wraps up.
