Johnson Controls and Tyco Are Discussing a Merger, Report Says

January 24, 2016, 10:24 PM UTC
The Davos World Economic Forum 2015
Alex Molinaroli, chief executive officer of Johnson Controls Inc., speaks during a during a session on the opening day of the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday, Jan. 21, 2015. World leaders, influential executives, bankers and policy makers attend the 45th annual meeting of the World Economic Forum in Davos from Jan. 21-24. Photographer: Jason Alden/Bloomberg via Getty Images
Photograph by Jason Alden — Bloomberg via Getty Images

Johnson Controls and Tyco International are reportedly in advanced talks to merge, and a deal, if reached, could be announced by Monday.

According to the Wall Street Journal, the combined company wold be valued between $15 billion and $20 billion.

[MONDAY UPDATE: The two companies have made it official]

Johnson (JCI) is a Fortune 500 company that manufactures auto batteries, among other things. The company saw revenue grow by about 2% between 2013 and 2014. However, WSJ reports that its stock price took a 25% hit over the past year as investors appeared to worry about its future growth, likely amid concern about climate change. Valued at $33 billion as of March 2015, the company is now worth about $23 billion.

Tyco (TYC), an Ireland-based security systems company, has also seen shares fall over the past year. It is valued just under $13 billion.

If the deal is completed, it would be Johnson’s largest in its more than century-long history. The merged company is expected to be headed by current Johnson chief executive Alex Molinaroli.

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