Triple whammy of market exit, CEO change, profit warning hurt co
Investments in battery material not justified now – Co
Stock falls 20% at one point, drags down peers too
Names Bayer’s Condon to succeed MacLeod
Nov 11 (Reuters) – Johnson Matthey’s (JMAT.L) shares plunged as much as 20% on Thursday after the British chemicals company said it would exit its battery materials business due to crushing competition and that Chief Executive Robert MacLeod would step down next year.
The London-listed company said potential returns from the battery materials unit could not justify investments anymore as it struggles to compete with more established large scale and low cost producers. It was looking at a sale of all or part of the unit, with the “ultimate intention of exiting”.
“This decision will allow us to accelerate our investment and focus on more attractive growth areas, especially where we have leadership positions such as in hydrogen…