Honeywell cuts Johnson Matthey Catalyst deal to 1.325 billion pounds as JM shares slide up to 17%

Honeywell has reduced the price of its planned acquisition of Johnson Matthey’s Catalyst Technologies business. The deal value has been cut to 1.325 billion pounds from the earlier 1.8 billion pounds agreement.

In dollar terms, the revised price stands at about 1.79 billion compared to the previous 2.43 billion. The original agreement was announced in May 2025 at roughly 11x projected 2025 EBITDA. The lower price reflects fresh negotiations after months of waiting.

Johnson Matthey saw its shares drop sharply after the announcement. The stock fell between 14% and 17% as investors reacted to the reduced valuation.

Honeywell Johnson Matthey catalyst deal revision

The acquisition will bring Johnson Matthey’s Catalyst Technologies unit under Honeywell’s Energy and Sustainability Solutions segment. Honeywell expects the business to drive long term growth and deliver cost synergies.

Despite the price cut, Honeywell stated that the deal will still be accretive to adjusted EPS in the first year. This means earnings per share are expected to benefit once the acquisition closes.

The long stop date for the transaction has been extended to July 21, 2026. It can be pushed further to August 21, 2026 if required. The companies are targeting closing by the end of August 2026, subject to regulatory approvals.

JM shares fall as market reacts to lower valuation

The sharp 14% to 17% drop in Johnson Matthey shares shows investor disappointment. Markets often react negatively when acquisition prices are reduced. It signals weaker bargaining power for the seller.

However, both companies confirmed that collaboration efforts will continue before the deal officially closes. Operational cooperation is expected to remain in place during the regulatory review period.

For Honeywell, the lower acquisition price improves capital efficiency. Paying 1.325 billion pounds instead of 1.8 billion reduces upfront cash outflow while still securing the Catalyst Technologies business.

The revised deal highlights how large industrial transactions can shift over time. Valuations change. Negotiations evolve. In this case, Honeywell secured a cheaper entry into a strategic growth segment while Johnson Matthey faces short term market pressure.