Corrects last paragraph to say energy, not materials segment

By Sabrina Valle

May 21 (Reuters) - Britain's Johnson Matthey JMAT.L 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.O is nearing an all-cash deal to acquire the catalyst unit.

Honeywell did not immediately respond to a request for comment.

Johnson Matthey 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 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 said it would spin off its automation, aerospace and materials into three separate public companies.

Johnson Matthey will be part of Honeywell's energy and sustainability solutions business segment.

($1 = 0.7451 pounds)

(Reporting by Sabrina Valle in New York, Bipasha Dey in Bengaluru; Editing by Vijay Kishore and by Sandra Maler)

((Sabrina.valle@tr.com))