Dana, Eaton Mobility combine to create $10bn powertrain giant

11th Jun 2026 14:10

(Sharecast News) - Shares in American powertrain group Dana dropped on Thursday after the announced merger with Eaton's mobility business, creating a business with an enterprise value of over $10bn.

Eaton Mobility provides propulsion solutions such as transmissions, clutches and torque control products, as well as e-mobility products like on-board chargers, inverters, converters, fuses and transmissions for electric vehicles.

The companies expect the deal to create a "premier, global powertrain leader focused on commercial and light vehicles".

The transaction values Eaton Mobility at $5.1bn, representing 8.3 times 2026 pro forma adjusted EBITDA.

Once combined, the group expects to generate $11bn in sales and around $1.7bn in adjusted EBITDA in 2026 on a fully synergised basis, with $250m of run-rate synergies expected within 24 months of completion.

Eaton will receive $1.1bn in cash for its mobility business, while Eaton shareholders wlll own at least 50.1% of the combined company upon closing, with Dana shareholders owning the rest.

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

"By expanding our presence in core markets with new products and complementary technologies, we are enhancing our ability to deliver greater value to customers while strengthening margins through a more balanced portfolio and meaningful synergies."

Dana shares were down 12.3% at $31.11 by 1543 BST, while Eaton was up 2.1% at $383.19.