Close Menu
News JournosNews Journos
  • World
  • U.S. News
  • Business
  • Politics
  • Europe News
  • Finance
  • Turkey Reports
  • Money Watch
  • Health
Facebook X (Twitter) Instagram
Latest Headlines:
  • Nvidia’s Jensen Huang Courts Beijing Amid Renewed Market Access in China
  • Volcanic Eruption in Iceland Forces Evacuation of Tourists from Blue Lagoon as Lava Approaches Grindavik
  • Humanity Faces Significant Losses, Says Spokesperson
  • Gun Seller Backed by Donald Trump Jr. Launches Stock Trading
  • Lightning Strike in New Jersey Leaves 1 Dead, 13 Injured
  • Used EV Batteries Poised to Power AI Growth
  • UK Inflation Data Reveals Key Trends for June
  • Hijacked Small Plane Grounds Flights at Vancouver International Airport
  • Experts Warn of Vulnerabilities in Federal E-Verify System Following Workplace Raids
  • Trial Commences Over Alleged Facebook Privacy Violations Involving CEO and Others
  • Controversy Surrounds Franco-Israeli Singer Amir at Francofolies de Spa Festival
  • Newsom Criticizes Trump’s National Guard Move, Urges Maturity
  • Potential Consequences of Trump’s Dismissal of Fed Chair Powell
  • Prince Harry Honors Diana’s Legacy by Advocating Against Landmines in Angola
  • Tsunami Warning Lowered to Advisory Following 7.2 Magnitude Earthquake near Alaska
  • Goldman Sachs Reports Q2 2025 Earnings Results
  • Rubio Calls Israeli Strike on Damascus a ‘Misunderstanding’ Amid Peace Efforts
  • Complete Skeleton of Medieval Knight Discovered Beneath Former Ice Cream Parlor in Poland
  • James Gunn Discusses “Superman”: Release Date, Character’s Immigrant Story, and Themes of Kindness
  • Assembly Discusses Olive Grove; Tanal’s Brief Action Sparks Varank’s Controversial Remarks
Facebook X (Twitter) Instagram
News JournosNews Journos
Subscribe
Saturday, August 2
  • World
  • U.S. News
  • Business
  • Politics
  • Europe News
  • Finance
  • Turkey Reports
  • Money Watch
  • Health
News JournosNews Journos
Activist Investor Reduces Stake in Johnson Matthey by 50%

Activist Investor Reduces Stake in Johnson Matthey by 50%

News EditorBy News EditorJuly 10, 2025 Europe News 5 Mins Read

New York-based activist investor Standard Investments recently announced a significant reduction of its stake in the London-listed company Johnson Matthey, dropping from 9.52% to 4.75%. This comes after a comprehensive six-month campaign aimed at transforming the underperforming specialty chemicals firm. The share price of Johnson Matthey has rebounded more than 35% during this period, prompting the firm to execute a series of moves to streamline operations and restore investor confidence.

Article Subheadings
1) Background on Standard Investments and Johnson Matthey
2) Details of the Six-Month Campaign
3) Key Developments and Changes at Johnson Matthey
4) Market Reaction and Analyst Insights
5) Implications for the Future

Background on Standard Investments and Johnson Matthey

Standard Investments operates as the investment arm of Standard Industries, a privately owned industrial enterprise. This firm primarily focuses on investments in the specialty chemicals sector, having made a considerable splash previously with its acquisition of W.R. Grace in 2021, a deal valued at $7 billion. Johnson Matthey, located in London, specializes in sustainable technologies and materials but has faced increasing scrutiny and criticism for what many deem a lack of strategic direction and resultant shareholder value erosion. The company has a long-established reputation, yet its recent financial performance has raised alarms among its stakeholders, prompting Standard Investments to engage actively in corporate governance matters.

Details of the Six-Month Campaign

Standard Investments initiated its public campaign against Johnson Matthey in December 2024, highlighting what it referred to as “sustained underperformance” attributed to the company’s management. The firm, at the time, was Johnson Matthey’s largest shareholder, holding approximately 11% of its stocks. In a pointed open letter co-authored by co-CEOs David Millstone and David Winter, the investment firm asserted that the board had overseen drastic declines in shareholder value, with investors losing 53% during the six-year tenure of the current chairman. This drastic decline served as a rallying point for Standard Investments as they sought to put pressure on the management to adopt new strategies.

Key Developments and Changes at Johnson Matthey

In response to the mounting pressure, Johnson Matthey announced a series of measures intended to address the concerns raised by Standard Investments. A key change included the formation of a new board investment committee, tasked with overseeing investment strategies and capital allocation. Additionally, the company declared its decision to exit its Hydrogen Technologies business, a move aimed at not only streamlining operations but also concentrating on more profitable sectors. Further emphasizing its commitment to revitalization, a board overhaul was announced in February, which notably included the resignation of chairman Patrick Thomas, targeted in the criticism from Standard Investments.

Market Reaction and Analyst Insights

A significant uplift in Johnson Matthey’s share price followed these announcements, surging about 30% after the company disclosed its $2.3 billion agreement to sell its catalyst technologies business to Honeywell. This deal was perceived as a substantial positive pivot, with industry analysts hailing it as a “surprise value unlock” that could position Johnson Matthey more favorably in the broader market. Furthermore, the sale price exceeded market expectations, propelling investment firms like JPMorgan and Berenberg to adjust their price targets for the company’s stock upwards. Analysts, observing the new management’s actions, posited that the firm is now at a critical juncture.

“For management who has been under pressure from activists since late 2024, this marks a potential turning point demonstrating strong execution,”

suggested an equity analyst from Deutsche Bank.

Implications for the Future

The ongoing transformation at Johnson Matthey could lead to a more focused company that aligns with shareholder interests more effectively. Stakeholders are keenly observing how the firm navigates its new strategy, especially in light of the recent divestments. The shift in leadership and strategy is expected to foster a culture of accountability and innovation. With a focus on optimizing its core capabilities, Johnson Matthey aims to restore investor trust and improve overall financial performance. Standard Investments, while reducing its stake, has signaled its intentions to remain engaged, as the company undergoes these pivotal changes.

No. Key Points
1 Activist investor Standard Investments has halved its stake in London-listed Johnson Matthey after a six-month campaign to overhaul the company.
2 Based in New York, Standard Investments is the investment arm of Standard Industries, a privately held industrial company that owns the specialty chemicals company W.R. Grace.
3 Standard began agitating late last year by publishing an open letter accusing Johnson Matthey’s board of presiding over “sustained underperformance” that had wiped out shareholder value.
4 Johnson Matthey’s share price has seen a remarkable recovery, surging over 35% since the pressure campaign began.
5 Key changes at Johnson Matthey include a new investment committee and significant changes in leadership to address the activist pressure.

Summary

The restructuring of Johnson Matthey amid the pressure from Standard Investments highlights the ongoing challenges faced by traditional companies in adapting to market expectations and delivering shareholder value. The activist campaign has resulted in significant strategic shifts that may revive the company’s fortunes while restoring investor trust. As stakeholders await further developments, the coming months will prove crucial in determining Johnson Matthey’s ability to sustain this newfound momentum.

Frequently Asked Questions

Question: What triggered Standard Investments to reduce its stake in Johnson Matthey?

Standard Investments halved its stake in response to a combination of its recent pressure campaign and a broader recovery in share prices, reflecting both the firm’s strategic pivots and the firm’s confidence in the company’s new direction.

Question: What are the expectations moving forward for Johnson Matthey?

The expectations are that Johnson Matthey will continue to implement its strategic changes, including optimizing core capabilities and enhancing shareholder value through focused governance and leadership changes.

Question: How significant is the recent sale of Johnson Matthey’s catalyst technology business?

This sale, valued at $2.3 billion, is seen as a pivotal moment for Johnson Matthey, enabling the company to refocus its operations and return substantial proceeds to shareholders, thereby positively influencing its stock performance.

Activist Brexit Continental Affairs Cultural Developments Economic Integration Energy Crisis Environmental Policies EU Policies European Leaders European Markets European Politics European Union Eurozone Economy Infrastructure Projects International Relations investor Johnson Matthey Migration Issues Reduces Regional Cooperation Regional Security Social Reforms Stake Technology in Europe Trade Agreements
News Editor
  • Website

As the News Editor at News Journos, I am dedicated to curating and delivering the latest and most impactful stories across business, finance, politics, technology, and global affairs. With a commitment to journalistic integrity, we provide breaking news, in-depth analysis, and expert insights to keep our readers informed in an ever-changing world. News Journos is your go-to independent news source, ensuring fast, accurate, and reliable reporting on the topics that matter most.

Keep Reading

Europe News

UK Inflation Data Reveals Key Trends for June

5 Mins Read
Europe News

Controversy Surrounds Franco-Israeli Singer Amir at Francofolies de Spa Festival

6 Mins Read
Europe News

Netanyahu Faces Minority Status as Coalition Partner Exits Israeli Government

5 Mins Read
Europe News

Future Palestinian State Promises Women’s Rights and Legal Respect, Says Foreign Minister

6 Mins Read
Europe News

Renault Shares Decline Following Reduced 2025 Outlook

5 Mins Read
Europe News

Study Confirms Vaccines Do Not Cause Autism, Yet Myths Persist

6 Mins Read
Mr Serdar Avatar

Serdar Imren

News Director

Facebook Twitter Instagram
Facebook X (Twitter) Instagram Pinterest
  • About Us
  • Get In Touch
  • Privacy Policy
  • Accessibility
  • Terms and Conditions
© 2025 The News Journos. Designed by The News Journos.

Type above and press Enter to search. Press Esc to cancel.