Johnson Controls, a U.S. manufacturer of car batteries and heating and ventilation equipment, is in advanced talks to buy fire protection and security company Tyco International, people familiar with the matter said.
A deal between Johnson Controls and Tyco, which have market capitalizations of $23 billion and $13 billion respectively, would provide the clearest indication yet that the recent market volatility has not derailed strategic mergers from advancing.
Terms of the potential deal could not immediately be learned. The sources, who asked not to be identified because the negotiations are confidential, cautioned that no agreement was certain. The Wall Street Journal, which first reported on the talks, said a deal could be announced as early as Monday.
Johnson Controls and Tyco did not respond to requests for comment.
The deal would come as Milwaukee, Wisconsin-based Johnson Controls was preparing to spin off its automotive seating and interiors business, to focus on its building efficiency and automotive battery operations.
Based in Cork, Ireland, Tyco provides more than 3 million customers globally with fire protection and security products and services.