Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential
According to reports, Honeywell is weighing the step due to “concerns over regulatory approvals and business milestones.” A final call could come within days, although talks are still ongoing.
The deal was first announced in May 2025. Honeywell agreed to pay £1.8 billion in cash for the Catalyst unit, which makes enzymes and tech used in fuel and chemical plants. At the time, the deal was seen as a solid fit for Honeywell’s push into clean fuel and process tech. Now, however, the tone appears more cautious.
First, there is the issue of regulatory approval. Large cross-border deals in the U.S. and Europe now face close review. If there are overlaps in fuel or process markets, that can slow or block a deal.
Second, there may be questions about how the unit has performed since the deal was signed. The report notes concerns tied to “business milestones.” That suggests Honeywell may not be fully at ease with recent results or targets.
For Johnson Matthey Plc, the stakes of the deal going through are higher. The sale was a key part of its reset plan. The firm has been working to focus on clean air and metal chemicals after past exits.
If Honeywell walks, investors may need to rethink that path. The firm would keep the Catalyst unit and may need to set a new plan. That could add near-term pressure to the shares. On the other hand, if the deal still closes, the stock may hold its recent gains.
For Honeywell, the impact may be more muted. Some investors often view deal discipline in a good light. If the firm believes the risk is too high, stepping back could be seen as smart capital use.
On the Street, Honeywell holds a Moderate Buy consensus view, based on 16 analysts’ ratings. The average HON stock price target is $245.50, implying a 0.63% upside from the current price.
