Honeywell to Buy Johnson Matthey Catalyst Unit for £1.33 Billion

Honeywell International Inc. plans to acquire Johnson Matthey Plc’s Catalyst Technologies in a deal valuing the unit at £1.33 billion ($1.8 billion), securing a deal at a lower price.

The British company expects to return about £1 billion of net sale proceeds to shareholders, it said Monday. Bloomberg News earlier reported that Honeywell agreed a price cut, salvaging a prior agreement from May of £1.8 billion that risked falling apart.

The deal for the unit, which makes enzymes for industrial processes, is expected to complete by the end of August.

Honeywell had been considering walking away from the deal, ...