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Bye Bye USA

25 January 2016 by lberuti

The march of companies abandoning their US citizenship to benefit from lower tax environments is showing no sign of abating, despite emerging as an issue in the US presidential race on which would be candidates from both side agree it should stop. Today JCI (Johnson Controls Inc) announced its merger with Tyco International Plc. Their headquarters will be based in Ireland, saving the merged company an estimated $150mln per year. It is not the only motivation for the deal though. JCI is a diversified auto-parts maker which is trying to reduce its exposure to the car market while expanding its building control system unit to become a multi-industrial business. The spin-off of JCI's automotive unit announced last year combined with today's merger will certainly put it closer to that goal.