Honeywell Revises Agreement to Acquire Johnson Matthey's Catalyst Technologies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy HON?
Source: seekingalpha
- Acquisition Agreement Revision: Honeywell has announced a revised agreement to acquire Johnson Matthey's Catalyst Technologies for £1.325 billion, down from £1.8 billion, reflecting the company's flexibility and cost control in its M&A strategy.
- Extended Regulatory Approval Deadline: The long stop date for the transaction has been extended to July 21, 2026, with a potential extension to August 21, 2026, if certain conditions are met, indicating Honeywell's focus on compliance and risk management during the acquisition process.
- Strategic Growth Driver: The merger aims to integrate Johnson Matthey's Catalyst Technologies with Honeywell's Process Technologies, enhancing capabilities in refining and renewable fuels, improving the catalyst portfolio, and driving market share expansion.
- Earnings Outlook Improvement: The deal is expected to be accretive to Honeywell's adjusted earnings per share in the first full year of ownership, further solidifying the company's competitive position in the global market.
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Analyst Views on HON
Wall Street analysts forecast HON stock price to fall
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 240.770
Low
195.00
Averages
235.07
High
262.00
Current: 240.770
Low
195.00
Averages
235.07
High
262.00
About HON
Honeywell International Inc. is an integrated operating company serving a range of industries and geographies around the world, with a portfolio that is underpinned by its Honeywell Accelerator operating system and Honeywell Forge platform. The Company provides actionable solutions for aerospace, building automation, industrial automation, process automation, and process technology. The Company supplies products, software, and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets. The Company’s portfolio of solutions and services is used in buildings worldwide for fire prevention, controls, access and security. Its offerings serve as the fundamental building blocks of industrial automation. Its sensor technologies and value-added smart edge devices offer connectivity across a variety of sensing and measurement applications. The Company offers a comprehensive portfolio of end-to-end process automation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Johnson Matthey Sells Catalyst Business to Honeywell for £1.33 Billion
- Price Adjustment: Johnson Matthey has agreed to sell its catalyst technologies business to Honeywell for £1.33 billion, a 27.8% reduction from the previously agreed price of £1.8 billion.
- Market Reaction: The price reduction in this deal may reflect market concerns regarding the future profitability of the catalyst business, potentially exerting negative pressure on Johnson Matthey's stock price.
- Strategic Restructuring: By divesting its catalyst business, Johnson Matthey can focus resources on its core operations, which may enhance overall operational efficiency and improve its financial condition.
- Industry Consolidation Trend: This transaction signifies a consolidation trend within the chemicals industry, as Honeywell strengthens its competitive position in the catalyst market, potentially prompting further M&A activities among other companies in the sector.
See More
Trump Announces Global Tariff Increase to 15%
- Tariff Increase Impact: President Trump announced a rise in global tariffs from 10% to 15%, following a Supreme Court ruling deeming the previous rate ‘anti-American’, which may exacerbate market uncertainty and affect investor confidence.
- Market Reaction: U.S. stock futures sharply declined on Monday morning, with Nasdaq futures down 0.6%, S&P 500 and Dow futures each falling 0.5%, and Russell 2000 futures nearly down 1%, indicating investor concerns over tariff hikes and geopolitical tensions.
- Retail Sentiment Shift: Retail sentiment towards the SPDR S&P 500 ETF (SPY) shifted from ‘neutral’ to ‘bearish’, while the Invesco QQQ Trust (QQQ) ETF remained ‘bearish’ amid high trading volumes, reflecting a pessimistic outlook on future market performance.
- Economic Data Watch: Investors will monitor factory orders data set to be released at 10:00 AM ET today, along with commentary from Fed Governor Christopher Wallace, as these insights could further influence market sentiment and investment strategies.
See More
European Shares Dip Amid U.S. Trade Policy Uncertainty
- Trade Policy Uncertainty: President Trump raised global tariffs from 10% to 15%, creating doubts about the relevance of trade agreements with the EU, which dampened investor sentiment and negatively impacted market performance.
- STOXX Index Decline: On Monday, the pan-European STOXX index fell by 0.3% to 628.62 points, reflecting market reactions to the new tariff policy, with Germany's DAX index dropping 0.7%, making it one of the most affected markets.
- Sector Performance Divergence: The technology sector led declines with a 1.3% drop, while bank stocks, perceived as more domestically focused, were among the few gainers, indicating varied market responses across different sectors.
- Stock Movements: Italy's largest utility, Enel, announced plans to increase capital expenditure over the next three years focusing on renewables, resulting in a 3.4% stock price increase; conversely, Johnson Matthey's stock plummeted 14% after agreeing to sell its catalyst technologies business to Honeywell, reflecting declining profitability.
See More
Honeywell Revises Agreement to Acquire Johnson Matthey's Catalyst Technologies
- Acquisition Agreement Revision: Honeywell has announced a revised agreement to acquire Johnson Matthey's Catalyst Technologies for £1.325 billion, down from £1.8 billion, reflecting the company's flexibility and cost control in its M&A strategy.
- Extended Regulatory Approval Deadline: The long stop date for the transaction has been extended to July 21, 2026, with a potential extension to August 21, 2026, if certain conditions are met, indicating Honeywell's focus on compliance and risk management during the acquisition process.
- Strategic Growth Driver: The merger aims to integrate Johnson Matthey's Catalyst Technologies with Honeywell's Process Technologies, enhancing capabilities in refining and renewable fuels, improving the catalyst portfolio, and driving market share expansion.
- Earnings Outlook Improvement: The deal is expected to be accretive to Honeywell's adjusted earnings per share in the first full year of ownership, further solidifying the company's competitive position in the global market.
See More
Honeywell Amends Agreement to Acquire Johnson Matthey's Catalyst Technologies for £1.325 Billion
- Adjusted Transaction Value: Honeywell has amended its agreement to acquire Johnson Matthey's Catalyst Technologies business, reducing the total consideration from £1.8 billion to £1.325 billion, reflecting a reassessment of the business's market value that could impact Honeywell's financial performance.
- Extended Deadline: The long stop date for the transaction has been extended to July 21, 2026, to accommodate outstanding transaction requirements, with the possibility of further extension to August 21, 2026, if regulatory approvals are not met, providing both parties additional time to ensure a smooth closing.
- Expected Business Integration: Honeywell anticipates that the acquisition will be accretive to its adjusted earnings per share in the first full year of ownership, indicating that the expansion into catalyst technologies will enhance its competitive edge in process technologies and drive future profitability.
- Ongoing Collaboration: Prior to the transaction's completion, Honeywell will maintain existing commercial collaborations with Johnson Matthey, which not only helps create value for customers globally but also mitigates potential business disruption risks during the integration process.
See More
Honeywell Amends Agreement to Acquire Johnson Matthey's Catalyst Technologies for £1.325 Billion
- Adjusted Transaction Value: Honeywell has amended its agreement to acquire Johnson Matthey's Catalyst Technologies business, reducing the total consideration from £1.8 billion to £1.325 billion, reflecting the company's strategic flexibility and cost management in its acquisition strategy.
- Extended Closing Date: The long stop date for the transaction has been extended to July 21, 2026, with a potential further extension to August 21, 2026, if regulatory approvals are not met, providing both parties additional time to fulfill transaction conditions and ensure a smooth closing.
- Strategic Synergies: This acquisition is expected to enhance Honeywell's capabilities in refining, petrochemicals, and renewable fuels, thereby strengthening its catalyst portfolio and creating synergies with existing Process Technologies and Automation businesses, which will drive future growth.
- Financial Impact Anticipation: The acquisition is projected to be accretive to Honeywell's adjusted earnings per share in the first full year of ownership, further solidifying its leadership position in the global market and enhancing shareholder value.
See More
Johnson Matthey Sells Catalyst Business to Honeywell for £1.33 Billion
- Price Adjustment: Johnson Matthey has agreed to sell its catalyst technologies business to Honeywell for £1.33 billion, a 27.8% reduction from the previously agreed price of £1.8 billion.
- Market Reaction: The price reduction in this deal may reflect market concerns regarding the future profitability of the catalyst business, potentially exerting negative pressure on Johnson Matthey's stock price.
- Strategic Restructuring: By divesting its catalyst business, Johnson Matthey can focus resources on its core operations, which may enhance overall operational efficiency and improve its financial condition.
- Industry Consolidation Trend: This transaction signifies a consolidation trend within the chemicals industry, as Honeywell strengthens its competitive position in the catalyst market, potentially prompting further M&A activities among other companies in the sector.
See More
Trump Announces Global Tariff Increase to 15%
- Tariff Increase Impact: President Trump announced a rise in global tariffs from 10% to 15%, following a Supreme Court ruling deeming the previous rate ‘anti-American’, which may exacerbate market uncertainty and affect investor confidence.
- Market Reaction: U.S. stock futures sharply declined on Monday morning, with Nasdaq futures down 0.6%, S&P 500 and Dow futures each falling 0.5%, and Russell 2000 futures nearly down 1%, indicating investor concerns over tariff hikes and geopolitical tensions.
- Retail Sentiment Shift: Retail sentiment towards the SPDR S&P 500 ETF (SPY) shifted from ‘neutral’ to ‘bearish’, while the Invesco QQQ Trust (QQQ) ETF remained ‘bearish’ amid high trading volumes, reflecting a pessimistic outlook on future market performance.
- Economic Data Watch: Investors will monitor factory orders data set to be released at 10:00 AM ET today, along with commentary from Fed Governor Christopher Wallace, as these insights could further influence market sentiment and investment strategies.
See More
European Shares Dip Amid U.S. Trade Policy Uncertainty
- Trade Policy Uncertainty: President Trump raised global tariffs from 10% to 15%, creating doubts about the relevance of trade agreements with the EU, which dampened investor sentiment and negatively impacted market performance.
- STOXX Index Decline: On Monday, the pan-European STOXX index fell by 0.3% to 628.62 points, reflecting market reactions to the new tariff policy, with Germany's DAX index dropping 0.7%, making it one of the most affected markets.
- Sector Performance Divergence: The technology sector led declines with a 1.3% drop, while bank stocks, perceived as more domestically focused, were among the few gainers, indicating varied market responses across different sectors.
- Stock Movements: Italy's largest utility, Enel, announced plans to increase capital expenditure over the next three years focusing on renewables, resulting in a 3.4% stock price increase; conversely, Johnson Matthey's stock plummeted 14% after agreeing to sell its catalyst technologies business to Honeywell, reflecting declining profitability.
See More
Honeywell Revises Agreement to Acquire Johnson Matthey's Catalyst Technologies
- Acquisition Agreement Revision: Honeywell has announced a revised agreement to acquire Johnson Matthey's Catalyst Technologies for £1.325 billion, down from £1.8 billion, reflecting the company's flexibility and cost control in its M&A strategy.
- Extended Regulatory Approval Deadline: The long stop date for the transaction has been extended to July 21, 2026, with a potential extension to August 21, 2026, if certain conditions are met, indicating Honeywell's focus on compliance and risk management during the acquisition process.
- Strategic Growth Driver: The merger aims to integrate Johnson Matthey's Catalyst Technologies with Honeywell's Process Technologies, enhancing capabilities in refining and renewable fuels, improving the catalyst portfolio, and driving market share expansion.
- Earnings Outlook Improvement: The deal is expected to be accretive to Honeywell's adjusted earnings per share in the first full year of ownership, further solidifying the company's competitive position in the global market.
See More
Honeywell Amends Agreement to Acquire Johnson Matthey's Catalyst Technologies for £1.325 Billion
- Adjusted Transaction Value: Honeywell has amended its agreement to acquire Johnson Matthey's Catalyst Technologies business, reducing the total consideration from £1.8 billion to £1.325 billion, reflecting a reassessment of the business's market value that could impact Honeywell's financial performance.
- Extended Deadline: The long stop date for the transaction has been extended to July 21, 2026, to accommodate outstanding transaction requirements, with the possibility of further extension to August 21, 2026, if regulatory approvals are not met, providing both parties additional time to ensure a smooth closing.
- Expected Business Integration: Honeywell anticipates that the acquisition will be accretive to its adjusted earnings per share in the first full year of ownership, indicating that the expansion into catalyst technologies will enhance its competitive edge in process technologies and drive future profitability.
- Ongoing Collaboration: Prior to the transaction's completion, Honeywell will maintain existing commercial collaborations with Johnson Matthey, which not only helps create value for customers globally but also mitigates potential business disruption risks during the integration process.
See More
Honeywell Amends Agreement to Acquire Johnson Matthey's Catalyst Technologies for £1.325 Billion
- Adjusted Transaction Value: Honeywell has amended its agreement to acquire Johnson Matthey's Catalyst Technologies business, reducing the total consideration from £1.8 billion to £1.325 billion, reflecting the company's strategic flexibility and cost management in its acquisition strategy.
- Extended Closing Date: The long stop date for the transaction has been extended to July 21, 2026, with a potential further extension to August 21, 2026, if regulatory approvals are not met, providing both parties additional time to fulfill transaction conditions and ensure a smooth closing.
- Strategic Synergies: This acquisition is expected to enhance Honeywell's capabilities in refining, petrochemicals, and renewable fuels, thereby strengthening its catalyst portfolio and creating synergies with existing Process Technologies and Automation businesses, which will drive future growth.
- Financial Impact Anticipation: The acquisition is projected to be accretive to Honeywell's adjusted earnings per share in the first full year of ownership, further solidifying its leadership position in the global market and enhancing shareholder value.
See More
