Tyco International headquarters
Photograph by Eliot J. Schechter — Bloomberg via Getty Images
By Reuters
January 25, 2016

Johnson Controls (jci), a U.S. maker of car batteries and heating and ventilation equipment, said it would merge with Ireland-based fire protection and security systems maker Tyco International (tyc).

Johnson Controls’ shares were up 5.3% at $37.40 in premarket trading on Monday. Tyco’s shares were up 10% at $33.65.

The businesses of Johnson Controls and Tyco will be combined under Tyco, which will be renamed Johnson Controls, after the deal closes.

The combined company would be domiciled in low-tax Ireland.

The deal will result in at least $500 million in savings in the first three years, and create at least $150 million in annual tax savings, the companies said.

The new company will be headed by Johnson Controls CEO Alex Molinaroli and will continue to trade under the “JCI” ticker on the New York Stock Exchange.

Johnson Controls’ shareholders will own about 56% of the combined company and receive a cash consideration of about $3.9 billion, upon closure of the deal.

Centerview Partners and Barclays were financial advisers to Johnson Controls, while Lazard and Goldman Sachs advised Tyco.

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