51 billion US dollars merger! Dana Incorporated (DAN.US) teams up with Eaton Corp. Plc (ETN.US) to create a global powerhouse in powertrain systems, with annual revenue aiming for 11 billion US dollars.

Dana Incorporated (DAN.US) announced on Thursday that it has agreed to merge its mobile business with Eaton Corp. Plc (ETN.US). This $5.1 billion deal will create a global powertrain leader focused on commercial vehicles and light vehicles, with the combined company expected to achieve $11 billion in sales and $1.7 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Following this news, as of the time of writing, Dana Incorporated's pre-market stock price dropped nearly 7%, while Eaton Corp. Plc's rose nearly 3%. Dana Incorporated provides products to almost all global automakers. Its technology covers driveline systems (axles, driveshafts, and transmissions), electric propulsion technology (motors, inverters, software and control systems, battery management systems, and fuel cell stacks), sealing solutions (gaskets, seals, cam cover gaskets, and oil pan modules), thermal management technology (transmission and engine oil cooling, battery and electronics cooling, turbo air cooling, and heat shields), and digital solutions (active and passive system controls, descriptive and predictive analytics). Both companies stated that the merger will combine Dana Incorporated's global powertrain, thermal management, and sealing technologies with Eaton Corp. Plc's capabilities in commercial vehicle transmissions, engines, and emissions control products, as well as advanced electrification technology, to form a more comprehensive product offering supplier for the commercial vehicle and light vehicle markets and related aftermarket channels. According to the agreement, after the completion of the transaction, Eaton Corp. Plc shareholders will hold at least 50.1% of the merged company's shares, while Dana Incorporated shareholders will hold 49.9% of the shares. Dana Incorporated Chairman R. Bruce McDonald will serve as Executive Chairman of the merged company, and Dana Incorporated's incoming CEO, Byron Foster, will serve as CEO of the merged company. Byron Foster stated, "This transaction marks an important milestone in our transformation and positions Dana Incorporated as a leading and scalable powertrain solutions provider." Both companies stated that, according to the terms of the transaction, the deal will be structured using a "reverse Morris trust" structure. Eaton Corp. Plc will receive approximately $1.1 billion in cash consideration, with the specific amount adjusted based on cash and debt at closing.