United States. Johnson Controls announced a new strategic and revolutionary move a few days ago by confirming its merger with the Irish security company Tyco International, which will form a new group that expects to generate annual revenues of around US $ 32,000 million.
Shareholders of the U.S. company, which has a stock market valuation of about $23 billion, will hold 56 percent of the new group's stakes, while those of Tyco, currently valued at about $13 billion, will get 44 percent.
In addition to the strategic acquisition, this transaction will allow Johnson Controls to reduce the tax burden to which it is subjected. For this, although the American company will have control and name the merged entity, it will be based in the Irish city of Cork, where Tyco International is based.
The move will save businesses at least $150 million in taxes a year. The U.S. city of Milwaukee, home until now of Johnson Controls, will meanwhile maintain the main offices of the new company for North America.
Johnson Controls CEO Alex Molinaroli said the transaction will allow the company to increase its global investments, develop new solutions for its customers and return money to its investors.
"The combination of Tyco and Johnson Controls is a highly strategic and value-adding step, joining the unique forces of two large companies to deliver best-in-class construction technologies and services to customers around the world," said Tyco CEO George R. Oliver.
