Johnson Matthey PLC's (LSE:JMAT) market value jumped by around £350 million on Friday after the investment arm of New York-based industrial firm Standard Industries nearly doubled its stake in the speciality chemicals maker, making it the largest shareholder.
Standard Latitude Master Fund, controlled by Standard Industries, now holds 10.08% of the UK-listed firm after taking a 5.2% stake in April 2022, which at the time sparked speculation that it could lead to a possible takeover.
Back then, shares in Johnson Matthey soared around 30%, while today shares are just over 10% to the good at 1,800.50p.
The investment comes too late to stop the London blue-chip from dropping out of the FTSE 250, which was confirmed earlier this week.
Who is Standard Industries?
Standard Industries is a privately held conglomerate with interests in specialty chemicals, building materials, property and investments.
“We focus on long-term investments in public markets across a range of sectors,” the firm’s website states which suggests a bid may not be in the offing.
However, it is not averse to deals. In 2021, it paid US$7.0 billion for chemicals business Grace in an all-cash deal.
Johnson Matthey’s history stretches back to the industrial revolution. Now it makes most of its sales from catalytic converters on petrol and diesel cars, a business that faces pressure as electric cars take over, with some additional irons in the fire of the emerging hydrogen industry.