Dana, a US automotive parts and power systems supplier, announced on June 11 it will merge with Eaton’s Mobility business in a transaction valued at about $5.1 billion [1, 2]. The deal uses a reverse Morris Trust structure, under which Eaton shareholders will own at least 50.1% of the combined company and Dana shareholders will hold roughly 49.9% [1].
Eaton will receive approximately $1.1 billion in cash from the deal, subject to adjustments based on the companies’ respective cash and debt levels [1]. The merger will create a vehicle technology supplier valued at nearly $10 billion [2].
The companies said the transaction is expected to close in the first quarter of 2027 [2].
The move allows Eaton to divest from its slower-growing Mobility division and concentrate on its electrical and power management segments, which benefit from strong demand in the AI data center market [2]. Dana CEO Jim Cramer praised the deal, calling it "the latest example of the industrial conglomerate 'doing everything right'" [2].
Jeff Marks, an industry analyst, said removing Mobility will let Eaton’s electrical equipment and data center exposure "really get to shine," predicting it will become "a much more secular grower" [2].
Both companies will now aim to complete regulatory and shareholder approvals ahead of the planned closing date next year.
