Johnson Controls, Tyco to merge in tax inversion deal

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.
The deal’s value was unclear and representatives didn’t immediately respond to requests for comment. Shares of Tyco TYC, +8.01%  jumped 16% to $34.65 in premarket trading while Johnson Controls shares JCI, +1.12%  rose 0.6%.
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.
 

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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.
The deal is expected to be completed in by the end of 2016, the companies said.
An expanded version of this report appears at WSJ.com.