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NEW YORK (TheStreet) -- Shares of Tyco International (TYC) are rising by 5.51% to $38.68 on heavy trading volume on Thursday afternoon, as Johnson Controls (JCI) said its $14 billion proposed merger with the company is moving forward.

The combined company would be a new giant provider of commercial-building systems, reflecting the growing move by some executives and shareholders toward companies that are larger, but more focused, the Wall Street Journal noted.

In its 2016 second quarter earnings release earlier today, Johnson Controls said its merger with Tyco is expected to close on October 1.

"My confidence that this powerful combination will create a world leader in buildings and energy technologies with significant strategic value for our customers, employees and shareholders just continues to grow," Johnson Controls CEO Alex Molinaroli said in a statement.

About 3.58 million of Tyco's shares were traded so far today vs. its average volume of 2.59 million shares per day.

Shares of Johnson Controls are rising by 4.93% to $41.69 on heavy trading volume this afternoon. Roughly 5.84 million of the company's shares were traded by this afternoon compared to its average volume of 3.49 million shares per day.

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Tyco is scheduled to post its 2016 second quarter results on April 29.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on Tyco stock.

The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures.

The team believes its strengths outweigh the fact that the company has had sub par growth in net income.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: TYC

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