Johnson Controls/Tyco International $16.5 billion merger

Overview:

• Johnson Controls has undertaken a $16.5 billion merger with Tyco International.
• The deal will see Johnson move its headquarters to Cork primarily for tax reasons.
• Johnson Controls is a US car battery, heating and ventilation equipment manufacturer.
• Tyco specialises in fire protection systems.
• Under the terms of the deal Johnson Controls will own 56% of the combined offering with Tyco owning the remaining 44%.
• A 60% ownership by Johnson Controls would not allow it to take advantage of the 'tax inversion' due to US Treasury rules.
• Centerview Partners and Barclays are the financial advisers to Johnson Controls.
• Lazard and Goldman Sachs are providing financial advice to Tyco.
• Citigroup is providing financing.

Sam Duke - Editor