Johnson Controls: Another Inversion Deal because of a failed Corporate Tax System

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.


  1. It's not a tax inversion. They just want fresher Guinness!

  2. Johnson Controls, Tyco Deal Adds to U.S. Tax Exodus - Many offshoots of Tyco’s empire have become targets of American firms seeking inversion partners:

    The Johnson Controls-Tyco deal is at least the 12th inversion pursued by American companies since the U.S. Department of the Treasury moved in September 2014 to curb these deals, according to a Wall Street Journal review. That is roughly the same number in the 16 months before the move.

  3. There’s No Uncertainty About Bad Tax Policy:

    There is no uncertainty. To compete globally and grow the middle class, Congress needs to lower the corporate tax rate to 15% or so. The other advantage to this 15% rate would be that U.S. companies, like Apple, Microsoft, GE, etc., would bring back much of the $2.3 trillion that has been earned and retained overseas since 2005.


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