Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Break up reports lift Johnson Matthey

AJ Bell is an easy to use, award-winning platform Open an account
We've accounts to suit every investing need, and free guides and special offers to help you get the most from them.
You can get a few handy suggestions, or even get our experts to do the hard work for you – by picking one of our simple investment ideas.
All the resources you need to choose your shares, from market data to the latest investment news and analysis.
Funds offer an easier way to build your portfolio – we’ve got everything you need to choose the right one.
Starting to save for a pension, approaching retirement, or after an explainer on pension jargon? We can help.
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Speculation that an activist investor is building a stake in chemicals business Johnson Matthey (JMAT) has revived talk of a break-up of the business and helped drive the shares higher.
The argument is that Matthey should split its prized vehicle batteries arm from the pressured exhausts catalyst division. While the former is seen as a beneficiary of a switch to electrical vehicles, the latter is seen as a victim of this trend.
When we flagged the stock as one of our picks for 2018 we argued that sentiment towards the catalyst business was overly weak, pointing to forecasts from investment bank Morgan Stanley which suggested it could continue to grow for at least another decade.
However, we also recognised that the real excitement is generated by its battery technology. In a nutshell it requires less cobalt than other solutions, which is a major plus point given pressures on supply of that material.
The company may address the clamour for a corporate shake up when it announces its results for the year to 31 March 2018 on 31 May.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.
Our website uses cookies to give you a better browsing experience.
You can choose to accept all cookies, or control which we use by clicking 'Manage cookies'. To learn more, read our cookie policy.