Johnson Controls (JCI) has announced that it will be merging with Tyco (TYC).
The deal will have Johnson Controls shareholders owning 56% of the new company and Tyco shareholders owning the other 44%. The merger will have the new company being combined under Tyco, which will then be renamed to Johnson Controls.
The merger of Johnson Controls and Tyco will have the new company’s global headquarters located in Cork, Ireland and its primary operational headquarters in North America will be at JCI’s current headquarters in Milwaukee, Fla. The new company will trade under the JCI ticker on the New York Stock Exchange.
Johnson Controls merger with Tyco will take a U.S. company and move it overseas to Ireland. This will allow it to benefit from “$150 million in annual tax synergies.”
Both Boards of Executives for Johnson Controls and Tyco have approved the merger. However, it’s still subject to regulatory approval and a shareholder vote. The deal is expected to close by the end of fiscal 2016.
JCI shares were down 4% and TYC shared were up 7% as of Monday morning.
More From InvestorPlace:
