Johnson Control/Tyco Merger

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Johnson controls and Tyco International merger was finalized in September of this year. The two companies’ combined will make about $32 billion in revenues after the automobile business called Adient. The merger will make the company the 14th largest industrial company in the U.S. The two companies are highly known for the number one providers of fire and security (Tyco) and building efficiency solutions (Johnson Controls). The major part of the merger was to gain size in the area of focus for both Tyco and Johnson Controls. By the looks of it this new company will take a large portion of the building controls and equipment market. Johnson Controls and Tyco merger is eventually going to bring together the best in the world class products like …show more content…
For one they have the ability to expand the company’s geographic coverage by the relationships that each one has with Europe and China. This will make it easier for the products to enter the different markets without time being an issue. Johnson Control and Tyco have the ability to extend the company’s business into new product categories. The company is already thinking of providing product and services that involve security, fire, HVAC and power solutions. The two companies complement each other with the services that they offer. The merger gave them an advantage by being able to combine the products and sell them to a wide variety of consumers. The company is thinking of building “smart” which will help them to gain access to new technologies or complementary resources and capabilities. This new technology consists of every product from the air conditioner to light bulbs to be connected to the internet, therefore, it will bring energy efficiency and productivity gains. By the two organizations becoming one they have created a more cost-efficient operation. As a result, Johnson Control will still be able to announce their new product called Aident. This new automotive business for the company will bring forth a cost-efficient operation as well as revenue. Aident spin-off will bring forth a new line of product for the company and it will be a start of new

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