Investor prods Johnson Matthey

Johnson Matthey’s largest shareholder, Standard Investments, is calling for the British precious metal catalyst specialist to conduct a strategic review that could lead to a sale of all or part of the company. Standard owns an 11% stake in Matthey and is an affiliate of Standard Industries, which controls the specialty chemical maker W. R. Grace. In a letter to Matthey’s board, Standard Investments complained that the firm wasted $410 million on a battery business that it ultimately divested at a loss. It is concerned that Matthey’s $375 million in outlays so far in building a hydrogen technology business will yield a similar result. It also says that Matthey’s automotive catalyst business is showing lackluster profitability. In addition to the review, Standard is calling on Matthey to refresh its board with new directors and possibly sell the hydrogen business. In a statement, Matthey says that it is “making progress in a challenging market environment through delivery of a comprehensive transformation strategy.”