This week’s $14 billion merger between Johnson Controls Inc JCI 1.34% and Tyco International demonstrates that there are certainly still large M&A deals happening in the face of the global economic uncertainty that has produced a shaky opening month for markets in 2016.
However, has the M&A boom already peaked and will deals this size be few and far between from now on?
Benzinga had the chance to speak with Chris Pultz of the Kellner Merger Fund this weak about both the Johnson/Tyco deal and the health of the overall M&A environment.
Pultz sees the Johnson/Tyco deal as a complementary deal that goes beyond just the massive tax advantages.
“It’s going to be Johnson Controls being able to offer a full suite of products for any bid they go in for, where they can say now in addition to your HVAC, we can also set up your security system and we can set up your fire security and have it all in one centralized place and you only have to deal with one person,” he told Benzinga.
When asked about the impact that global economic uncertainty has had on the M&A boom, Pultz said…
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