Dana to Combine With Eaton's Mobility Business in $5.1 Billion Deal — 2nd Update

By Connor Hart

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.

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.

Under this structure, Eaton would first separate its Mobility Group to Eaton shareholders. Immediately thereafter, Dana would merge with a subsidiary of the Mobility Group, with Dana surviving as a wholly owned subsidiary of the Mobility Group.

Dana Chairman R. Bruce McDonald is slated to serve as executive chairman of the combined company, responsible for integration and synergy realizations. Incoming Dana Chief Executive Byron Foster is set to serve as its top executive.

"This transaction marks an important milestone in our transformation and positions Dana as a leading, scaled provider of powertrain solutions," Foster said.

Eaton said the transaction would mark the next step in its ongoing portfolio transformation, and that the separation would be immediately additive to its organic growth rate and operating margins.

"Looking ahead, our portfolio will be closely aligned with the powerful megatrends driving generational growth in our electrical and aerospace businesses," Chief Executive Paulo Ruiz said.

The combined company would continue to operate under the Dana name, retaining its listing on the New York Stock Exchange.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

June 11, 2026 09:00 ET (13:00 GMT)