Investing.com — on Monday said it would return less cash to shareholders after agreed to buy its Catalyst Technologies business at a reduced price of £1.33 billion, down from £1.8 billion agreed in May 2025, sending shares in the British speciality chemicals maker down 15%.
The revised price, announced in a regulatory filing to the London Stock Exchange, reduces the planned shareholder return to approximately £1 billion from £1.4 billion, comprising an £800 million special dividend and a £200 million on-market share buyback alongside a share consolidation.
The two companies also extended the long-stop date for satisfying antitrust approval conditions to July 21, from Feb. 21, with a further extension to Aug. 21, available if certain conditions are met.
Johnson Matthey said the price reduction reflected Catalyst Technologies’ business performance, including the deferral of key sustainable solutions licensing projects and weaker demand for the supply of catalysts due to what it described as “the challenging market environment.”
The transaction is expected to close around mid-year.
Johnson Matthey said it remained on track to deliver fiscal 2025-26 underlying operating profit growth “at the higher end of a mid single digit percentage range” and free cash flow “materially higher than last year,” on a pro forma basis excluding Catalyst Technologies and its Value Businesses, at constant metal prices and constant currency.
Jefferies, which rates Johnson Matthey shares a Buy with a price target of 2,420 pence, said the revised consideration “remains more favourable than weekend reports suggesting Honeywell was considering terminating the deal,” and noted the £1.33 billion figure “still compares favourably” against the bank’s sum-of-the-parts valuation of £700 million for the business prior to the transaction being announced.
The brokerage said the price reduction represented approximately £2.7 per share, which could be slightly less after tax. Shares in Johnson Matthey were trading at 2,304 pence as of Friday’s close, giving the company a market capitalisation of £3.9 billion.