US conglomerate Honeywell has finalised its £1.3 billion acquisition of Johnson Matthey's catalyst technologies division, marking one of the largest foreign takeovers of a UK industrial asset this year. The deal, which was first announced in late 2025, received regulatory clearance from UK competition authorities earlier this month and closed on 15 July 2026.
Johnson Matthey, the FTSE 250-listed speciality chemicals company headquartered in London, will retain its precious metals refining and hydrogen fuel cell catalyst operations. The sale of the catalyst technologies unit, which produces emissions-control catalysts for automotive and industrial markets, allows the company to sharpen its focus on higher-growth areas such as battery materials and hydrogen technologies.
The FTSE 250 index edged up 0.2% on Friday to 20,814 points, with Johnson Matthey shares rising 0.8% to 1,742p. The broader FTSE 100 added 0.3% to 8,256 points, supported by a weaker pound and gains in defensive sectors. Analysts at Peel Hunt noted that the completion removes a significant overhang for Johnson Matthey, allowing management to concentrate on its strategic pivot toward the energy transition.
For Honeywell, the acquisition strengthens its position in industrial automation and clean-air technologies. The US group, which already has a substantial UK footprint through its aerospace and building technologies divisions, will integrate the catalyst business into its performance materials and technologies segment. The deal is expected to generate cost synergies of approximately £80 million annually within three years, according to Honeywell's investor materials.
Industry observers say the transaction underscores the ongoing consolidation in the global catalysts market, driven by tightening emissions regulations and the shift toward electric vehicles. UK-based investors and pension holders with exposure to the FTSE 250 may see a modest boost from the deal's completion, though the longer-term impact will depend on Johnson Matthey's success in its remaining businesses.