* JM proposes closure of battery materials unit
* Says talks with potential buyers did not lead to deal
* Shares fall nearly 4%
(Updates shares, adds detail, background)
By Yadarisa Shabong
Jan 12 (Reuters) - Johnson Matthey said on
Wednesday it plans to close its battery materials business,
putting about 430 jobs at risk, as the British chemicals firm
has not found a buyer for the entire unit.
The company, which announced plans in November to exit the
battery materials business, said talks with a number of unnamed
parties have not led to an agreement.
Shares in the FTSE 250 firm fell as much as 4% after the
news.
JM said it was now pursuing the sale of the division's
individual assets.
JM, like larger European rivals Umicore of Belgium
and Germany's BASF, had bet on growth in cathode
materials, the most complex chemical component of an automotive
battery, to offset an expected decline in their lucrative
businesses supplying catalytic converters for cars.
JM's decision to exit the battery materials business was due
to crushing competition and low returns.
Last month, Umicore cut its outlook for cathode materials,
saying sale volumes would fail to keep pace with global market
growth.
Other players in the battery materials market include
China's Beijing Easpring Material Technology and
South Korean companies LG Chem Ltd and Posco
Chemical.
JM said it was starting a consultation with its employees
about the closure. A majority of the permanent staff at JM's
battery materials business are in the United Kingdom.
The London-based company, which is bringing in Bayer's
Liam Condon as chief executive officer in March, said
the closure would lead to additional impairment charges, job
cuts and other costs.
It has already taken a charge of about 314 million pounds
related to the business as of September, and the closure will
lead to cash costs of about 150 million pounds ($205.34
million), Johnson Matthey said.
($1 = 0.7305 pound)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by
Ramakrishnan M. and Jonathan Oatis)