Johnson Controls, Tyco to Merge in Inversion Deal - Merger will place combined companies’ headquarters in Ireland, Tyco’s home
Johnson Controls Inc. and Tyco International PLC agreed to merge, the companies said Monday, in a deal that will place the combined company’s headquarters in Ireland.
Under the terms of the agreement, Johnson Controls will own about 56% of the merged company. The new firm will be renamed Johnson Controls PLC and maintain Tyco’s Irish legal domicile. The companies said the merged entity would save at least $150 million a year on taxes and at least $500 million in costs over the first three years after the completion of the deal.
Johnson Controls Chief Executive Alex Molinaroli will lead the firm for 18 months after the tie-up is complete. After that term, Tyco CEO George Oliver will become CEO and Mr. Molinaroli will become executive chairman for a year, after which Mr. Oliver will become chairman and CEO.
So-called inversion deals, in which U.S.-based companies acquire foreign-based businesses to take advantage of the more favorable tax status, have popular—and controversial—in recent years.Comment: Last year was Medtronic . Image source.