Johnson Controls, Tyco confirm merger

Johnson Controls Inc. and Ireland-based Tyco International PLC confirmed a deal to merge, creating a company with a combined market capitalization of $36 billion. As part of the deal, Johnson Controls shareholders will own 56% of the combined company, and receive a cash consideration of about $3.9 billion. The businesses of the two companies will be combined under Tyco International, which will be renamed Johnson Controls PLC. Shareholders of Johnson Controls may choose to receive one share of the combined company for each Johnson Controls share they own, or $34.88 a share in cash, which is 2% below Friday's closing price of $35.60. The Wall Street Journal originally reported on Sunday that Johnson Controls was in talks to combine with Tyco. Johnson Controls' stock has lost 21% over the past three months while Tyco's has dropped 17% and the S&P 500 has declined 8.1%.

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