Dana to merge with Eaton’s mobility arm in $5.1 billion deal

Dana Incorporated (NYSE:DAN) has reached a definitive agreement to combine with Eaton's (NYSE:ETN) Mobility business, a blockbuster industrial carve-out that values the division at $5.1 billion and establishes a premier global vehicle powertrain supplier.

The transaction is structured as a Reverse Morris Trust, an optimized legal maneuver that allows a parent company to divest an asset or business segment without triggering corporate-level tax liabilities.

Under the agreed-upon terms, Dublin-headrolled Eaton will spin off its newly defined Mobility Group into an independent corporate vehicle before merging it immediately with Maumee, Ohio-based Dana.

When the transaction closes, Eaton shareholders will own a controlling stake of at least 50.1% of the newly enlarged enterprise, while existing Dana equity holders will retain approximately 49.9%.

The multi-billion-dollar tie-up positions the combined company to achieve immediate scale across both light and commercial vehicle markets.

The unified company is targeting pro forma 2026 estimated sales of approximately $11 billion alongside an adjusted EBITDA of $1.7 billion, yielding a highly profitable pro forma adjusted EBITDA margin of roughly 15%.

Management expects to unlock $250 million in annual run-rate operational synergies within 24 months of closing.

The blockbuster transaction has already received the unanimous endorsement of both companies' corporate boards.

The deal is scheduled to achieve final tax-free closure in the first quarter of 2027, subject to customary regulatory certifications, clearing periods, and approval from a majority of Dana voting common shareholders.