Technology
Tyco and Johnson Controls Set for Merger and Tax Inversion
Published:
Last Updated:
Tyco International PLC (NYSE: TYC) and Johnson Controls Inc. (NYSE: JCI) made waves in the market early on Monday on news of a merger and tax inversion. The companies announced that they have entered into a definitive merger agreement wherein Johnson Controls will combine with Tyco to create a leader in building products and technology, integrated solutions and energy storage.
Both boards of directors have unanimously approved the agreement, but it is still subject to regulatory and shareholder approval.
Under the terms of the agreement, Johnson Controls shareholders will own about 56% of the equity of the combined company and receive aggregate cash consideration of approximately $3.9 billion. Current Tyco shareholders will own roughly 44% of the equity of the combined company.
The combined business will be renamed Johnson Controls PLC. The companies expect that shares of the combined company will be listed on the New York Stock Exchange under Johnson Controls’ current ticker.
After the transaction closes, the newly combined company is expected to maintain Tyco’s Irish legal domicile and global headquarters in Cork, Ireland. The primary operational headquarters in North America for the combined company will be in Milwaukee, where Johnson Controls has been based.
24/7 Wall St.Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
