Manufacturing companies Johnson Controls and Tyco International are merging into a $32 billion company.
Milwaukee-based Johnson Controls is shifting their legal and global headquarters to Tyco's Ireland location; however, their operational headquarters will remain in Wisconsin. At the same time, Johnson Controls plans on spinning off its automotive business into a company called Adient at the beginning of 2017.
This merger will reduce costs $500 million over the first three years of the deal. They will also save $150 million annually in taxes.
In 2012, Tyco broke up into three companies, focusing on fire protection and security products.
"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."
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