(Reuters) – UK chemicals company Johnson Matthey has agreed to sell its catalyst technologies business to Honeywell International for 1.8 billion pounds ($2.4 billion), including debt, it said on Thursday, driving its shares up by a third.
In early trading, the company’s share price rose 33.6% to 1856 pence, putting it on track for its biggest one-day surge yet.
Johnson Matthey is streamlining the company after pressure from an activist shareholder and plans to focus on its two main businesses that make pollution filters for cars and process platinum group metals.
The business to be sold designs and manufactures catalysts used in the production of sustainable aviation fuel, fertilisers, paints and other products.
“We will now fundamentally re-shape Johnson Matthey into a more focused and leaner business,” Chief Executive Liam Condon said.
Condon’s appointment in late 2021 was marked by the company’s exit from its battery materials business and a profit warning. It has since sold its medical device components business in 2024.
Catalyst Technologies made up about 19% of Johnson Matthey’s total sales in the year ended March 2025.
Standard Investments, one of its largest shareholders, urged the group last December to initiate a strategic review and overhaul its board.
JM in February changed its finance head and in January launched a review of its executive pay.
The deal is expected to generate net proceeds of approximately 1.6 billion pounds, the British company said, adding that around 88% of the amount will be returned to shareholders.
($1 = 0.7447 pounds)
(Reporting by Yamini Kalia and Yadarisa Shabong in Bengaluru; Editing by Mrigank Dhaniwala, Sherry Jacob-Phillips and Barbara Lewis)
