Eaton will merge its $5.1 billion Mobility Group with Dana to form an enterprise valued at over $10 billion, with Eaton shareholders owning 50.1% and Dana shareholders 49.9%. Eaton will receive a roughly $1.1 billion cash distribution financed by new debt ahead of anticipated Q1 2027 closing.
Eaton and Dana have agreed to merge Eaton's Mobility Group, valued at approximately $5.1 billion, with Dana in a combined entity valued at over $10 billion. Under the terms, Eaton shareholders will own 50.1% of the merged company and Dana shareholders 49.9%, and Eaton will receive roughly $1.1 billion in cash.
The transaction supports Eaton's 2030 growth strategy by allowing the company to concentrate on its electrical and aerospace divisions while leveraging the combined business's commercial vehicle and advanced electrification capabilities alongside Dana's powertrain, thermal, and sealing technologies.
Upon closing, the merged entity will operate under the Dana Incorporated name with R. Bruce McDonald as executive chairman and Byron Foster as CEO, effective July 1, 2026. The board will consist of all existing Dana members plus three designees from Eaton.
The merger is structured as tax-free for U.S. federal income tax purposes and is subject to Dana shareholder approval, regulatory clearances, and customary closing conditions, with the transaction expected to finalize in the first quarter of 2027.
