China approval to lift deal overhang

Research evidence excerpt

China approval to lift deal overhang

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Buy Johnson Matthey 6 July 2026

Company Update

Europe Plc

United Kingdom

Reuters Bloomberg Exchange Ticker Price at 3 Jul 2026 (GBP) 2,014.00

JMAT.L JMAT LN LSE JMAT

Price Target (GBP) 2,400.00

Chemicals

2,388.00 -

Specialty Chemicals 52-week range (GBP) 1,736.00

Valuation & Risks

Tristan Lamotte

Research Analyst

+44-20-7547-1862

Johnson Matthey has finally received approval for the sale of its Catalyst

Technologies business to Honeywell from Chinese authorities. This is a clear Virginie Boucher-Ferte

positive. This last approval has been holding up the deal for some time, leading to

+33-1-4495-5934

bears' concerns that the deal might not be approved or that the deal might

otherwise fall through. Rajiv Dalal

Research Associate

We calculated material possible downside if the deal were to fall through; this

announcement removes this overhang. We believe a number of investors saw this Saurabh Mehndiratta

element as too risky for them to be involved. Research Associate

We highlighted deal approval as one of three key catalysts that we expect to drive

the shares in our 4th June Catalyst Call. Since then, PGM prices have come down Price/price relative

somewhat, but the impact thus far on mark-to-market EBIT should not be 3000

overstated. The other risk that has risen is around autos (e.g., BMW warning).

However, JM's Clean Air business has a number of supportive drivers (EPA27, truck 2000

cycle, European legislation, cost savings) so again we would not want to overstate

the risks. JM's Clean Air business has been much less correlated to autos OEMs 2024 2025 2026

than one might expect. Finally, now that the CT divestment seems to be moving Johnson Matthey Plc – (Rebased)