MINNEAPOLIS (AP) â¿¿ Industrial products maker Pentair Inc. said Wednesday that the European Commission has approved its $4.53 billion deal to combine with Tyco International Ltd.'s flow control business. The regulatory clearance moves the deal one step closer to uniting two of the biggest players in the water systems industry.
Tyco shareholders will own about 52.5 percent of the combined company and Pentair shareholders will own about 47.5 percent under the proposed all-stock deal, which was announced in March. It is still subject to shareholder approval.
If completed, the combined company will retain the Pentair Inc. name and Pentair's CEO will remain in place. Two Tyco International Ltd. nominees will join the board.
The deal is part of Tyco's strategy to break itself up into three independent companies, including one for flow control products. The business sells valves and controls for the energy, mining and water markets. It also designs and installs heat management systems for the energy and general process industries. The Pentair is subject to Tyco completing its split, which it expects to do by September.
Pentair believes the addition of Tyco's business will expand its global reach and give it greater access to fast-growth regions, while also allowing it to capitalize on growth in the energy, infrastructure and industrial sectors.
The combined company will be based in Switzerland, where Tyco is currently incorporated. Its main U.S. office will be in Minnesota, where Pentair is based.
Pentair's shares fell 32 cents to close at $37.98 and were unchanged in after-hours trading. Tyco's shares fell 38 cents to close at $51.74 and dipped 8 cents after hours Wednesday.