Honeywell Adjusts Acquisition Terms for Johnson Matthey's Catalyst Technologies

Honeywell International Inc. has amended its agreement to acquire Johnson Matthey Plc’s Catalyst Technologies business, reducing the purchase price from £1.8 billion ($2.4 billion) to £1.325 billion ($1.79 billion). This adjustment comes amid Honeywell's earlier considerations to withdraw from the deal due to concerns regarding regulatory approvals and business milestones. The revised agreement also extends the deadline for securing necessary approvals to July 21, with a potential further extension to August 21 if certain conditions are met.

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The acquisition is crucial for Johnson Matthey as it seeks to pivot its business strategy towards clean air and platinum group metal chemicals. The British company anticipates returning approximately £1 billion of the net sale proceeds to shareholders, which includes £800 million through a special dividend and £200 million via an on-market buyback program. Following the initial announcement of the acquisition in May 2025, Johnson Matthey's shares experienced a significant increase, rising nearly 60% over the past year.

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In a statement confirming the amended agreement, Honeywell emphasized its commitment to completing the acquisition while addressing the necessary regulatory hurdles. Johnson Matthey expressed optimism about the progress of its new cash-focused business strategy and reaffirmed its performance guidance for 2025-2026.

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While the deal's adjustment has been framed positively by both companies, some analysts have raised concerns about the implications of the price cut. Critics argue that the reduction may reflect underlying issues within Johnson Matthey's Catalyst Technologies business, potentially undermining investor confidence in the company's turnaround efforts.

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There are discrepancies regarding the timeline and conditions for the completion of the acquisition. While Honeywell has set a new deadline for regulatory approvals, the specific conditions that could trigger an extension to August 21 remain unclear. Additionally, the extent of Honeywell's initial concerns about walking away from the deal has not been fully detailed in the reports.

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• “The British company added that it is making “good progress” on the implementation of its new cash-focused business and is on track to deliver 2025-2026 performance in line with guidance.” — Johnson Matthey

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