Johnson Controls to proceed with Tyco merger

• Johnson Controls (NYSE:JCI) says it will move forward with its planned $14B merger with Tyco International (TYC) despite tougher rules on inversion deals.
• JCI's says it expects the combined company to generate $650M in operational cost and tax savings over the first three years after the merger closes, which is anticipated near the end of both companies' fiscal years which close in September.
• JCI +0.7% premarket after beating FQ2 earnings estimates and raising EPS estimates for FQ3 to $1.10-$1.04 vs. $0.98 analyst consensus estimate and for FY 2016 ending in September to $3.85-$4 vs. prior company guidance of $3.70-$3.90 and $3.78 analyst consensus.
• Now read Johnson Controls-Tyco tie-up likely to survive Treasury rules, analyst says