Why Honeywell just shaved about $600 million off the price of a chemicals acquisition

By Steve Goldstein

Honeywell agreed to a lowered price on Johnson Matthey's catalyst technology business.

A previous headline on this report inaccurately expressed a price change as being in dollars when it is actually in sterling. The story has been corrected.

Honeywell International on Monday received a 26% discount on its deal to acquire a business tied to the struggling chemicals industry.

Johnson Matthey said it's lowering the sale price of the catalyst technology business it's selling to Honeywell to GBP1.325 billion ($1.8 billion) from GBP1.8 billion, citing its recent business performance, including the deferral of key sustainable solution licensing projects and a challenging market environment.

It's also giving Honeywell more time to complete the deal.

The news fits with Friday's move by LyondellBasell (LYB) to cut its dividend in half, again citing challenging market conditions.

Honeywell already sells catalyst and process technologies, and for the U.S. company, the acquisition is a chance to expand its base to refining and petrochemical customers as well as offer customers a complete solution for the production of lower emission fuels, like sustainable aviation fuel.

Johnson Matthey in response is cutting its capital-return plan to GBP1 billion from GBP1.4 billion.

Honeywell shares (HON) were steady in premarket trade.

Johnson Matthey (UK:JMAT) stock tumbled 15% in London trade.

"While the revised consideration is clearly not an optimal outcome, it remains more favorable than weekend reports suggesting Honeywell was considering terminating the deal," said analysts at Jefferies of Johnson Matthey's situation.

-Steve Goldstein

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02-23-26 0823ET