Johnson Controls Inc. and Tyco International PLC have announced a $14 billion merger, with the resulting company pretending to be “Irish.” This is called an “inversion” and is all about dodging taxes.
Johnson Controls is actually based in Milwaukee. Tyco is based in Princeton, N.J. but became “Irish” through its own prior tax-dodging inversion(s). The Washington Post explains this, in “Manufacturing giants Tyco and Johnson Controls agree to merge“:
This is not the first time Tyco, which started as a New Jersey-based research laboratory for the U.S. government in the 1960s before growing into a global behemoth with workers in about 50 countries, has made use of tax-avoidance measures. In 1997, it merged with a Bermuda-based company in another corporate inversion before moving its headquarters to Switzerland in 2008. It moved to Ireland in 2013.
Tyco is also remembered for its former President Dennis Kozlowski, who was convicted in 2005 of various crimes related to looting shareholders and using the money for things like a 2001 $2.2 million party on the island of Sardinia.More ...