May 21 (Reuters) - Britain's Johnson Matthey ( JMPLF )

confirmed on Wednesday that it is in advanced discussions over a

potential sale of its Catalyst Technologies division, in a deal

that could be worth more than $2 billion.

The London-based company, founded in 1817, has been

exploring the sale of all or part of its businesses over the

past couple of years to compensate for its underperformance.

Recently, it underwent management changes following pressure

from activist investors dissatisfied with its financial results.

Sky News first reported the negotiation. The Financial Times

separately reported that U.S. industrial conglomerate Honeywell ( HON )

is nearing an all-cash deal to acquire the catalyst

unit.

Honeywell ( HON ) did not immediately respond to a request for

comment.

Johnson Matthey ( JMPLF ) is known for its expertise in chemical

processes and materials science, particularly in the areas of

catalysis, precious metals, and fine chemicals. It has

operations in more than 30 countries, and annual revenue of $17

billion.

Honeywell ( HON ) is trying to improve results by focusing on more

targeted sub-sectors and expanding them, and has announced more

than $9 billion in acquisitions over the past 18 months. In

February, Honeywell ( HON ) said it would spin off its automation,

aerospace and materials into three separate public companies.

Johnson Matthey ( JMPLF ) will be part of Honeywell's ( HON ) energy and

sustainability solutions business segment.

($1 = 0.7451 pounds)