Another Massive U.S. Company just Left the Country
January 26, 2016 / D.Collins / No comments
Another Massive U.S. company leave the country.
FT
Johnson Controls strikes $20bn Tyco acquisition
Johnson Controls has agreed to acquire Tyco International in a $20bn industrial tie-up that will allow the manufacturer to slash its tax bill by moving its corporate domicile from the US to Ireland.
The transaction is structured as a reverse takeover that will see Tyco shareholders own 44 per cent of the combined group, while Johnson Controls investors will hold the remainder and receive $3.9bn in cash. It values Tyco shares at $34.88, an 11 per cent premium to its closing price at the end of last week
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The new company will keep Tyco’s Irish domicile and Cork headquarters, allowing Johnson Controls to capture a lower tax rate and create “at least $150m in annual tax synergies”, the companies said. Other synergies will total at least $500m over the first three years, they added.
The deal highlights the inability of the US government to stop its large corporations from fleeing the country’s tax regime and suggests that so-called “inversion” deals remain highly attractive to companies struggling to grow their top line.
http://www.thechinamoneyreport.com/2016/01/26/another-massive-u-s-company-leave-the-country/
