07:28 AM EDT, 06/11/2026 (MT Newswires) -- Dana (DAN) has agreed to combine with Eaton's (ETN) Mobility unit in a Reverse Morris Trust transaction valued at $5.1 billion, creating a merged entity with an enterprise value of around $10 billion, the companies said separately on Thursday.

Eaton will receive a $1.1 billion cash distribution while its shareholders take a minimum 50.1% equity stake in the new business, leaving Dana investors with the remaining ownership, the companies said.

The combined entity will retain the Dana name and will be led by Chief Executive Byron Foster, the companies said.

The companies expect the deal to close during Q1 2027 and to deliver $250 million in cost synergies within two years, they said.

Shares of Dana were down 5.6%, while shares of Eaton rose 2% in Thursday's premarket activity.