Johnson Matthey shares were having a bad summer even before the Volkswagen scandal. The company provides catalytic converters to the car industry, one of three suppliers globally. Those that go into diesel vehicles are six times more profitable to the company than the ones in petrol vehicles.
This is a business that has been in flux for several years, shifting from its original roots in precious metals to the provision of specialist chemicals. Yesterday marked the completion of the sale of its Alfa Aesar business for £256 million. This is engaged in chemicals distribution and is therefore not core.
Johnson Matthey says that the proceeds will be returned to investors. A sum of 148p a share is in the market, and a precise figure will