Strategic Rationale for Tyco-Johnson Controls Merger

The merger is positioned as a unique combination of number one positions in building controls, commercial HVAC, and fire and security, leveraging a direct channel to market. The companies argue their business model is fundamentally different from competitors like UTC and Honeywell, who rely on distribution channels they cannot control, enabling greater synergy realization.

“If you look at some of our competitors that have similar product profiles, they have distribution which they can’t control their distribution. And so it’s very, very different. It’s really apples and oranges as it relates to our ability to provide synergy.”

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