Tyco Up 7% Following Johnson Controls Merger Agreement

Johnson Controls Inc (NYSE: JCI) has entered into a definitive merger agreement with Tyco International plc (Ireland) Ordinary Share (NYSE: TYC).

Shares of Johnson Controls were trading lower by 0.27 percent at $35.50 early Monday morning, while shares of Tyco were higher by more than 7 percent at $32.89.

The combined entity will be named Johnson Controls plc and will be listed on the New York Stock Exchange under the ticker "JCI" and will also maintain Tyco's Irish domicile.

See Also: Johnson Controls To Acquire Tyco Despite Market Turbulence

"The proposed combination of Johnson Controls and Tyco represents the next phase of our transformation to become a leading global multi-industrial company," stated Alex Molinaroli, chairman and chief executive officer, Johnson Controls. "With its world-class fire and security businesses, Tyco aligns with and enhances the Johnson Controls buildings platform and further positions all of our businesses for global growth. Through this transaction, we will also expand our ability to further invest globally, develop new innovative solutions for customers and return capital to shareholders."

"The combination of Tyco and Johnson Controls is a highly strategic, value-enhancing step that brings together the unique strengths of two great companies to deliver best-in-class building technologies and services to customers around the world," said George R. Oliver, chief executive officer, Tyco. "We believe this transaction will allow us to better capture opportunities created by increased connectivity in homes, buildings and cities. Joining forces with Johnson Controls pairs our leading established businesses with robust innovation pipelines and extensive global footprints to deliver greater value to customers, shareholders and employees of both companies."