Johnson Matthey has slashed the sale price of its catalyst technologies business to Honeywell by more than a quarter, according to company officials. The adjustment comes after the deal was delayed due to competition investigations and the business suffered from the impact of U.S. tariffs.

The FTSE 250 speciality chemical group announced last May that it had agreed to sell the business, which focuses on emissions control and environmental technologies. However, regulatory hurdles and external economic pressures forced the company to renegotiate the terms of the sale.

Johnson Matthey said the revised price reflects the challenges faced by the business in recent months. The catalyst technologies division had already seen a decline in performance due to supply chain disruptions and a slowdown in demand from the automotive sector.

Honeywell, a global industrial and aerospace company, has not commented on the revised terms but is expected to complete the acquisition in the coming months. The original deal was valued at approximately £1.2 billion, but the new price is expected to be significantly lower, according to industry analysts.

Officials at Johnson Matthey said the decision to reduce the sale price was made to ensure the business is transferred to a stable owner who can invest in its future. The company is also exploring other strategic options for its remaining assets.

The catalyst technologies market has been under pressure in recent years due to shifting regulatory requirements and increased competition from Asian manufacturers. Johnson Matthey has been working to diversify its operations and reduce its reliance on the European market.

The revised sale price is expected to be finalized in the next few weeks, pending approval from regulatory authorities. Honeywell is known for its strong presence in the environmental technologies sector and is likely to integrate the business into its existing operations.