Dana said it agreed to combine with Eaton’s Mobility business in a $5.1 billion deal, aiming to create a more comprehensive supplier serving commercial- and light-vehicle markets.
The companies on Thursday said Eaton shareholders would own at least 50.1% of the combined company at closing, with Dana shareholders set to own about 49.9%
Under the deal’s terms, Eaton would receive a cash distribution of roughly $1.1 billion, subject to adjustments. Most Read from The Wall Street Journal The combination would integrate Dana’s powertrain, thermal and sealing technologies with Eaton Mobility’s commercial-vehicle transmissions, engine and emissions products, and advanced electrification capabilities, forming a company with approximately $11 billion in sales. Dana expects the transaction to deliver $250 million in annual run-rate savings within two years of closing, driven by reduced structural costs, purchasing scale, manufacturing optimization and engineering efficiencies, it said.
Shares of Dana fell 7.1%, to $32.94, in premarket trading. Shares of Eaton were trading 3.1% higher, at $387. The deal, expected to close in the first quarter of 2027, would be structured as a Reverse Morris Trust, Dana said.