The combined company will use Tyco's Irish address for the headquarters to save $150 million in taxes. Fred Katayama reports.
Another huge inversion deal. Johnson Controls is buying Tyco International to create a company with revenue topping $40 billion, and they'll use Tyco's Irish address as the headquarters - a move they estimate will save at least $150 million in taxes. Similar inversion deals like Pfizer's purchase of Allergan have come under fire in Congress and from Presidential candidates. Johnson Controls makes everything from auto parts to air conditioning and heating equipment for buildings. Tyco produces fire protection and security systems. By merging, the two will be able to expand their lineup of products and services for commercial buildings. Tyco became infamous for former CEO Dennis Kozlowski's lavish spending - remember that Toga party - and his conviction for grand larceny and securities fraud. Tyco's beleaguered shares - down 28 percent over the last 12 months - bounced sharply higher in early trading. Johnson Controls' shares - down 26 percent over that same period - got a smaller lift.