Caution Flags for Johnson Controls' Car-Parts Spinoff
The car-parts unit will face strong headwinds as a stand-alone.
This article is for subscribers only.
Johnson Controls' auto business is getting the short end of the stick in the company's breakup.
Once the largest U.S. supplier of car parts, Johnson Controls is spinning off what's left of its auto business and refocusing on air conditioning and fire systems with the acquisition of Tyco International. The merger -- an inversion that will move Johnson Controls' legal address to Ireland -- took a big step forward last week as the company locked up shareholder approvals.