Dana and Eaton Mobility Merge in $5.1 Billion Deal

U.S.-based automotive components and powertrain supplier Dana Incorporated has reached a definitive agreement with intelligent power management company Eaton Corporation to combine Dana with Eaton’s Mobility business, in a transaction valued at approximately $5.1 billion. The deal will be structured as a Reverse Morris Trust transaction, under which Eaton shareholders will own at least 50.1% of the combined company upon closing, while Dana shareholders will hold approximately 49.9%. Under the agreement, Eaton will receive a cash distribution of approximately $1.1 billion, subject to adjustment based on the combined company’s cash and debt levels at closing.