Johnson Controls Inc and Tyco International have formally announced plans to merge, creating a company with revenue of more than $40 billion that will be based in low-tax Ireland – a sign that market volatility has not derailed strategic mergers.

Mikwaukee-based Johnson Controls, which has a market value $23 billion, makes heating and ventilation systems and car batteries, while Cork, Ireland-based Tyco, valued at $13 billion, specializes in fire protection systems.

Johnson Controls operates a facility at 4722 Pear Street in St. Joseph.

(Read the company announcement here)

The combined company will save about $150 million a year in tax by basing in Tyco’s legal domicile, the companies said.

Johnson Controls’ shareholders will own about 56 percent of the combined company and receive a cash consideration of about $3.9 billion.  The merger will create savings of at least $500 million in the first three years, the companies said.

The companies didn’t provide an exact value for the merger.

The new company, to be called Johnson Controls Plc, will be headed by Johnson Controls Chief Executive Alex Molinaroli and will continue to trade on the New York Stock Exchange.

Johnson Controls has been preparing to spin off its automotive seating and interiors business and said on Monday the spinoff was on track for early first quarter of 2017.