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Honeywell International Inc. announced Thursday it will acquire the catalyst technologies division of Johnson Matthey PLC for £1.8 billion ($2.4 billion) in an all-cash deal aimed at expanding its refining and renewable fuel capabilities.

The acquisition, which is expected to close in the first half of 2026, comes as part of the U.S. technology conglomerate’s strategy to provide cleaner energy solutions. Honeywell, based in Charlotte, North Carolina, said the transaction remains subject to regulatory approvals, though it did not name specific regulators.

Johnson Matthey, listed on London’s FTSE 250, said its board has unanimously approved the sale and does not require shareholder approval to proceed. The U.K.-based chemicals firm said the sale will help it become a “more focused and leaner business,” according to CEO Liam Condon.

The catalyst technologies unit, headquartered in London with operations in the U.S., Europe, and India, develops catalyst systems that enhance chemical process efficiency. It employs roughly 1,900 people and reported £86 million in operating profit in the year ending March—up nearly 23% from the prior year.

Honeywell CEO Vimal Kapur said the acquisition will help the company meet growing demand for diversified energy sources. “This move enhances our ability to deliver sustainable innovations, from blue hydrogen and blue ammonia to renewable aviation fuel,” he said.

Latham & Watkins LLP is representing Honeywell, with cross-border legal counsel led by Max Schleusener in Chicago and Richard Butterwick in London. Slaughter and May is advising Johnson Matthey, with partners Andrew Jolly and Claire Jackson leading the team. Financial advisers include Goldman Sachs International and Robey Warshaw LLP, while Citigroup Global Markets Ltd. and Deutsche Numis are serving as corporate brokers.

Johnson Matthey plans to return £1.4 billion from the sale to shareholders and retain £200 million for corporate purposes. The company has been reshaping its business, including a $700 million sale of its medical device components unit to Montagu Private Equity in March 2024.