NEW YORK (TheStreet) -- Johnson Controls (JCI) - Get Report stock continues to rise, up by 2.54% to $35.08 in mid-afternoon trading on Tuesday, after the company announced its merger with Tyco International (TYC). 

Shares of Johnson Controls rose on Monday after the industrial company announced that it would combine with Tyco, an Irish security systems company. 

Johnson Controls shareholders will hold 56% of the combined company and Tyco shareholders will hold about 44%, the company said in a statement. 

The merger will place Johnson Control's new headquarters in Ireland, which will allow Johnson Controls to take advantage of a lower tax rate. The company estimates it will save $150 million on taxes annually. 

"Johnson Controls has been on a multiyear trajectory to transform into a true industrial growth company. I think this acquisition fits well in that strategy," Noah Kaye, an analyst at Oppenheimer & Co, told Bloomberg. "Fundamentally, we see this as a company with advanced energy storage and advanced building controls capabilities and the Tyco products should integrate well."

After rising on Monday, Tyco stock is down 0.73% to $33.90 in mid-afternoon trading on Tuesday. 

Separately, 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.

TheStreet Ratings rated this stock as a "buy" with a ratings score of B-. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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

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