Johnson Controls and Tyco Announce Plans to Merge
MILWAUKEE, WI and CORK, Ireland -Johnson Controls (NYSE: JCI) and Tyco (NYSE. TYC) have announced plans to merge. Together, the new company is expected to be a world leader in building products and technology, integrated solutions and energy storage.
Under the terms of the agreement Johnson Control shareholders will own about 56 percent equity in the new company and receive$3.9 billion in cash considerations. Tyco shareholders will own about 44 percent equity in the combined company.
The businesses of Johnson Controls and Tyco will be combined under Tyco International plc, and will be renamed “Johnson Controls plc.” Shares of the combined company will be listed on the New York Stock Exchange and traded under the “JCI” ticker. The combined company is expected to keep its global headquarters in Cork, Ireland, the home of Tyco. The operational headquarters for North America will remain in Milwaukee, WI., Johnson Controls’ home base.
The merger is expected to be completed by the end of fiscal year 2016, following the approval of regulators and the shareholders of both Johnson Controls and Tyco.